Outback Co, was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicated that 6% of the units sold will prove defective and require an average repair cost of $25 per unit. During Outback's first month of operations, total sales were 1,00 units; by the end of the month, 8 defective units had been repaired. The liability for product warranties at month-end should be