At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2021 were $210 million. Fifteen percent of the units sold were returned in 2021 and repaired or replaced at a cost of $4.70 million. The amount of warranty expense on Angel's 2021 income statement is: 8 Multiple Choice $4.70 million O $31.50 million $16.80 million $20.20 million