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Warranty Costs Brigham Company sells an electric timer that carries a 6 0 - day unconditional warranty against product failure. Based on a reliable statistical
Warranty Costs
Brigham Company sells an electric timer that carries a day unconditional warranty against product failure.
Based on a reliable statistical analysis, Brigham knows that between the sale and the end of the product warranty
period, three percent of the units sold will require repair at an average cost of $ per unit.
The following data reflect Brighams recent experience:
October November December Dec. Total
Units sold
Known product failures from sales in:
October
November
December
Calculate the estimated liability for product warranties at December
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