Sheffield.com sells 7300 units of its product for $440 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $60 per unit. In the year of sale, warranty contracts are honored on 130 units for a total cost of $7800. What amount should Sheffield.com accrue on December 31 for estimated warranty costs?

$13140

$7800

$5340

$78840