Dirty Harry Company began offering a three$-$year warranty on its products at the beginning of $2024.$ The warranty program was expected to cost Dirty Harry $4\%$ of net sales. Net sales made under warranty in $2024$ were $$194$ million. Twelve percent of the units sold were returned in $2024$ and repaired or replaced at a cost of $$4\mathrm{.}60$ million. How much warranty expense should Dirty Harry report in its $2024$ income statement?

Multiple Choice

$$4\mathrm{.}60$ million.

$$7\mathrm{.}76$ million.

$$29\mathrm{.}10$ million.

$$11\mathrm{.}16$ million.