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Question - Cizmar Company sells a television that carries a 90-day unconditional warranty against product failure. From prior years' experience, Cizmar estimates that 4% of units sold each period will require repair at an average cost of $150 per unit. During the current period, Cizmar sold 22,000 units and repaired 200 units. How much warranty expense must Cizmar report in its current period income statement?
a. $138,000
b. $132,000
c. $102,000
d. $30,000
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