Rose's business sells air conditioners which have a one-year warranty.Based on historical data, the warranty costs amount to 14% of sales.During 2012, air conditioner sales are $300,000.Actual warranty expenses paid in 2012 are $37,000.

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The Answer of Rose's business sells air conditioners which have a one-year warranty.Based on historical data, the warranty costs amount to 14% of sales.During 2012, air conditioner sales are $300,000.Actual warranty expenses paid in 2012 are $37,000.

Rose's Business Sells Air Conditioners Which Have a One-Year Warranty