Electromotion Ltd. is a new company selling toy cars founded in Jan of Year 1. In Year 1, 30,000 units of toy cars were sold. The company offers warranty to repair the cars and the cost of a repair is as follows:

Failure type	Probability	Repair Cost per unit
No failure	96%	0
Minor failure	3%	50
Significant failure	1%	600

During Year 1, 1000 units were repaired with minor failure and 200 units were repaired with significant failure. As of the end of Year 1, the ending balance of provision for repairs is

A.

75,000

B.

65,000

C.

45,000

D.

55,000