Panaramic Co. was organized to sell a single product that carries a? 45-day warranty against defects. Engineering estimates indicate that 5?% of the units sold will prove defective and require an average repair cost of $ 50 per unit. During Panoramic?'s first month of? operations, total sales were 800 ?units; by the end of the? month, 10 defective units had been repaired. The liability for product warranties at? month-end should be

Panoramic Co. was organized o se a single product hal carries a 4 day warranty against detects. Engineering estimates indicate hat 5% o the units sold wil prove detective and require an average repair cost o S50 per unit Durinq Panoramic's first month of operations, total sales were 800 units; by the end of the month, 10 defective units had been repaired. The liability for product warranties at month-end should be OA. $2,500 B. $2,000. C. $500 D. $1,500 E. none of these