X QC9-4 (similar to) Question Help Panoramic Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 3% of the units sold will prove defective and require an average repair cost of $35 per unit. During Panoramic's first month of operations, total sales were 1,100 units; by the end of the month, 6 defective units had been repaired. The liability for product warranties at month-end should be A. $1,365. B. $1,155 OC. $210. OD. $945 O E none of these