At the beginning of 2021, Gamma Inc. began offering a two-year warranty on its products. The warranty program was expected to cost Levii 8% of net sales. Net sales made under warranty in 2021 were $187 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 Gamma's 2021 income statement is Multiple Choice $2805 million 5470 m $4.96 milion $4.36