Crescent City, Inc

Crescent City, Inc. sells a single product for $2,700 per unit, including a 90-day warranty against defects. It is estimated that 3% of the units sold will prove defective and require an average repair cost of $210 per unit. During July, 800 units were sold. Five of them were reported defective and repaired in July.
What amount should be added to the Estimated Liability for Product Warranties for July?

A) $13,500
B) $44,100
C) $56,700
D) $ 3,990