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QUESTION 15 Bob's Hot Tubs Inc. sold $200,000 worth of hot tubs in 20X6. A three-year comprehensive warranty is included in the sales price. Historically,

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QUESTION 15 Bob's Hot Tubs Inc. sold $200,000 worth of hot tubs in 20X6. A three-year comprehensive warranty is included in the sales price. Historically, warranty costs have averaged 2% of total sales. During 20X6, the firm incurred $2,000 to service goods sold in 20X5 and $400 to service goods sold in 20X6. What was Bob's warranty expense for 20X6? a $4,000 b. $400 O $2,400 O d. $2,000

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