Petula's business sells heat pumps which have a one-year warranty.Based on historical data,the warranty costs amount to 11% of sales.During 2013,heat pump sales are $400,000.Actual warranty expenses paid in 2013 are $40,000.

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The Answer of Petula's business sells heat pumps which have a one-year warranty.Based on historical data,the warranty costs amount to 11% of sales.During 2013,heat pump sales are $400,000.Actual warranty expenses paid in 2013 are $40,000.

Petula's Business Sells Heat Pumps Which Have a One-Year Warranty