Capture Co. was organized to sell a single product that carries a 45-day warranty against...
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Capture Co. was organized to sell a single product that carries a 45-day warranty against defects.
Capture Co. was organized to sell a single product that carries a 45-day warranty against defects. Engineering estimates indicate that 10% of the units sold will prove defective and require an average repair cost of $70 per unit. During Capture's first month of operations, total sales were 600 units; by the end of the month, eight defective units had been repaired. The liability for product warranties at month-end should be A. $4,760. B. $560 OC. $3,640. D. $4,200
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