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At the beginning of 2024, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of
At the beginning of 2024, Angel Corporation began offering a 1-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2024 were $330 million. Five percent of the units sold were returned in 2024 and repaired or replaced at a cost of $11.8 million. The amount of warranty expense in Angel's 2024 income statement is: Multiple Choice $49.5 million. $10.4 million $11.8 million. $13.2 million
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