Question
In 2014, Slimon Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products,
In 2014, Slimon Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty: 2% Second year of warranty: 5% Sales and actual warranty expenditures were: 2014: sales of $300,000; warranty expenditures of $10,000 2015: sales of $400,000; warranty expenditures of $20,000 What is the estimated warranty expense in 2015? Select an answer and submit.
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. a $35,000. b $15,000. c $23,000. d $14,000.
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