Sales made in fiscal 2016 for $50,000,000 include a 5 year warranty coverage. The estimated cost for warranty is expected to be 2% for the first 4 years and 5% for the last year. Determine how much warranty expense will be recorded in fiscal 2016.*

2 points

A) 1,000,000

B) 4,000,000

C) 5,000,000

D) 6,500,00