How much is the warranty expense

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How much is the warranty expense? Henry Stevenson works as the Manager of Used Car Superstore. His Company prides itself on including a three year bumper to bumper warranty on all car sales – No matter how old the car is. Henry’s job responsibility includes estimating the amount of the warranty on each car sale. Henry knows the older the car is, the higher the warranty cost will be to the business. Edward Wolf, the owner of the store, has been criticizing Henry on the amount of warranty expense he has been recording. Edward believes that Henry is overestimating the cost of the warranty expense and has told Henry that he needs to cut the cost in half. What should Henry do? What would you do?

Reference no: EM131711742

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