Brook's Bike Company sold 80 mountain bikes during May.The company offered a one-year warranty.Future warranty expense was estimated to be $25 per bike.During May,the company spent $115 on parts and labor to repair three bikes that were under warranty.The warranty expense for May was ________.

Question

Quizplus · Accepted Answer

The warranty expense for May is calculated by estimating the future warranty expense per bike and multiplying it by the number of bikes sold. Therefore, $25 per bike * 80 bikes = $2,000.

Brook's Bike Company Sold 80 Mountain Bikes During May