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B 4 5 Midterm Exam #2 - Fall 2025 6 7 8 9 10 11 12 13 4 15 16 Finish attempt ... 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Time left 2:03:43 Question 13 Not yet answered Marked out of 3.00 Flag question A company sells medical equipment that carries a one-year unconditional warranty against product failure. From prior years' experience, the company estimates that 3% of units sold each period will require repair at an average cost of $1,000 per unit. During the current period, the company sold 180,000 units for $5,000 per unit and repaired 5,200 of those units. How much warranty expense must the company report in its current-period income statement? Select one: O a. $156,000 O b. $5,400,000 O c. $5,200,000 O d. $27,000,000 Next Previous Save Answers 4 20 CA F3 delete F2 F1 ese 8 # @ A. O P Y U T Q W E R H J K G