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QC9-4 (similar to) 3 Question Help Camping Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate
QC9-4 (similar to) 3 Question Help Camping Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 3% of the units sold will prove defective and require an average repair cost of $40 per unit. During Camping's first month of operations, total sales were 800 units; by the end of the month, 5 defective units had been repaired. The liability for product warranties at month-end should be O A. $760. OB. $1,160 O C. $200 OD. $960. O E. none of these
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