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Peeking Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 11% of the units sold will prove defective and require an average repair cost of $30 per unit. During Peeking's first month of operations, total sales were 1,200 units; by the end of the month, six defective units had been repaired. The liability for product warranties at month-end should be A. $180. B. $3,960. C. $3,780. D. $4,140. O C. $3,780. O D. $4,140. O E. none of these