ashley electronics, Inc. manufactures and distributes LCD televisions. Every television manufactured by Ashley carries ab assurance-type warranty covering all parts and labor to protect against defects for a 2-year period. During the current year, Ashley's sales amounted to $10,002,000. Ashley estimates that the total costs of providing the assurance-type warranty will be 5% of sales. Actual repair costs for the first year after the sale were 222,500 with 152,000 for the parts and $70,500 for labor (paid). During the 2ndv year, the company incurred 285,000 in total repairs qith 150000 for parts and 135000 for labor (paid)