Question: Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced costing Excom $30 per

Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced costing Excom $30 per radio. During September, Excom sold 640 radios for $40 each. For what amount in September would Excom debit Product Warranty Expense? Round your answer to the nearest whole dollar.

a.$960

b.$30

c.$40

d.$25,600

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