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Outback Co. was organized to set a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 11% of the units sold

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Outback Co. was organized to set a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 11% of the units sold will prove defective and require an average repair cost of $30 per unit. During Outback's first month of operations, total sales were 600 units; by the end of the month, twelve defective units had been repaired. The ability for product warranties at month-end should be O A $360 OB. $2,340 OC. $1.980 D. $1,620 Calculator

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