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Safari Co. was organized to sell a single product that carries a 45-day warranty against defects. Engine 7% of the units sold will prove defective

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Safari Co. was organized to sell a single product that carries a 45-day warranty against defects. Engine 7% of the units sold will prove defective and require an average repair cost of $70 per unit. During Safari's first month of operations, total sales were 1,200 units; by the end of the month, six defective units had been repaired. ering estimates indicate that he liability for product warranties at month-end should be OA. $5,460. B. $6,300. O C. $420. O D. $5,880

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