Lana Appliances sells dishwashers with a four-year warranty.In 2018,sales revenue for dishwashers is $96,000.The company estimates warranty expense at 4.5% of revenues.What is the 2018 warranty expense? (Round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The 2018 warranty expense is calculated as 4.5% of the sales revenue, which is 4.5% of $96,000 = $4,320.

Lana Appliances Sells Dishwashers with a Four-Year Warranty