Answer:
$90,000
Explanation:
From the question above a company sells each of its printers for 1,800
Each of the printer sold comes with a 2 year warranty
An estimate of 2% of printers sold 30,000
400 printers where serviced under the warranty
To calculate the company's warranty expense for the month of December, the first step will be to find the number of estimate printers that was returned
= printers sold×rate of printer returned
= 30,000×2/100
= 30,000×0.02
= 600
Therefore, the warranty expenses can be calculated as follows
Number of estimated printers returned×Average warranty cost
= 600×150
= $90,000
