On January 1, 2019, Sandhill Company began a warranty program to stimulate sales. It is estimated that 5% of the units sold will be returned for repair at an estimated cost of $38 per unit. Sales and warranty figures for the three years ended December 31 are as follows: 2019 2020 2021 Sales (units) 2,400 1,900 700 Sales price per unit $145 $120 $220 Units returned for repair under warranty 77 105 97 Actual warranty.costs $4,560 $3,300 $1,110