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Ivanhoe Company offers a five-year warranty on its products. Ivanhoe previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate

Ivanhoe Company offers a five-year warranty on its products. Ivanhoe previously estimated warranty costs to be 3% of sales but in 2025 revised this estimate to 1% due to process and quality control improvements. Ivanhoe reported warranty costs of $76200 on $2540000 of sales in 2023 and $91200 on $3040000 in 2024. Sales revenue for 2025 was $5040000. What is Ivanhoe Company's warranty expense for 2025?

A. 151200

B 50400

C 167400

C 0

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