EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During the year, the company

recorded net sales of $3,800 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods

under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels' balance sheet included an accrued warranty liability of

$32.6 million and at the end of the year, the accrued warranty liability balance was $24.8 million. What was EZ Wheels Corporation's warranty

expense for the year?

Select one:

a. $53.4 million

b. None of these are correct.

c. $152.0 million

d. $24.8 million

e. $45.6 million