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Compute amount of warranty expense on angel income statement

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Reference no: EM133111691

Question - At the beginning of 2018, Angel Corporation began offering a one-year warranty on its products. The warranty program was expected to cost Angel 4% of net sales. Net sales made under warranty in 2018 were $180 million. The units were repaired or replaced at a cost of $5.3 million in 2018. Compute the amount of warranty expense on Angel's 2018 income statement?

a. $5.3 million

b. $7.2 million

c. $9.0 million

d. $27.0 million

Reference no: EM133111691

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