Peeking Co. was organized to sell a single product that carries a 45-day warranty against defects Engineering estimates indicate that 12% of the units sold will prove defective and require an average repair cost of $30 per unit. During Peeking's first month of operations, total sales were 1,100 units; by the end of the month, eight defective units had been repaired. The liability for product warranties at month-end should be O A. $240. O B. $3,720. O C. $3,960 OD. $4,200