Capture Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 12% of the units sold will prove defective and require an average repair cost of $30 per unit. During Capture's first month of operations, total sales were 1,100 units; by the end of the month, seven defective units had been repaired. The liability for product warranties at month-end should be OA. $3,750. OB. $210. BE OC. $4,170. O D. $3,960 CLITS

Capture Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering entinutes indicale phat 12% of the units sold wil prove defective and require an warranties at month-end should be A. $3,750. B. $210 C. $4,170. D. $3,960