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Question - At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2018 were $202 million. Fifteen percent of the units sold were returned in 2018 and repaired or replaced at a cost of $4.40 million. Find the amount of warranty expense on Angel's 2018 income statement?
a. $30.30 million.
b. $16.16 million.
c. $19.56 million.
d. $4.40 million.
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