Suring 2020, in its first year of operations, Bennett Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales were $8,600,000 and $9,500,000 in 2020 and 2021, respectively. Actual warranty expenditures were $165,000 and $484.000 in 2020 and 2021 respectively. During 2021, Bennett's warranty ability Multiple Choice O Increases by $50,000 O o increases by 5656,000 O O Decreases by $220.000 O O O Decreases by 294.000