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Brookes Bike Company sold $3,780 worth of mountain bikes in June. Warranty expense is estimated to be 2% of sales. During June, Brookes Bikes replaced

Brookes Bike Company sold $3,780 worth of mountain bikes in June. Warranty expense is estimated to be 2% of sales. During June, Brookes Bikes replaced two faulty parts under warranty. The parts cost a total of $100. The warranty expense for June was ________.

$175.60

$75.60

$100

$65.60

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