Current Attempt in Progress Sheridan Inc. began selling game consoles on November 1, 2024. The company offers a 60-day warranty for defective merchandise. Based on past experience with other similar products, Sheridan estimates that 2.10% of the units sold will become defective in the warranty period, and that the average cost of replacing or repairing a defective unit is $14. In November, Sheridan sold 36,000 units and 480 defective units were returned. In December, Sheridan sold 50,000 units and 690 defective units were returned. The actual cost of replacing the defective units was $13.104.