Bramble.com sells 5800 units of its product for $450 each. The selling price includes a one-year...

 

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Bramble.com sells 5800 units of its product for $450 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit. In the year of sale, warranty contracts are honored on 130 units for a total cost of $6500. What amount should Bramble.com accrue on December 31 for estimated warranty costs? Bramble.com sells 5800 units of its product for $450 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit. In the year of sale, warranty contracts are honored on 130 units for a total cost of $6500. What amount should Bramble.com accrue on December 31 for estimated warranty costs?

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Answer To calculate the estimated warranty costs that Bramblecom should accrue on December 31 we nee... View the full answer