Warranties Clearview Company manufactures and sells high-quality television sets. The most popular line sells for $1,150

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Warranties Clearview Company Manufactures And Sells High Quality Television Sets The Most Popular Line Sells For 1 150 1 (61.32 KiB) Viewed 24 times

Warranties Clearview Company manufactures and sells high-quality television sets. The most popular line sells for $1,150 each and is accompanied by a three-year warranty to repair, free of charge, any defective unit. Average costs to repair each defective unit will be $105 for replacement parts and $65 for labor. Clearview estimates that warranty costs of $12,240 will be incurred during 2016. The company actually sold 600 television sets and incurred replacement part costs of $3,400 and labor costs of $5,300 during the year. The adjusted 2016 ending balance in the Estimated Liability for Warranties account is $9,900. Required: 1. How many defective units from this year's sales does Clearview Company estimate will be returned for repair? units 2. What percentage of sales does Clearview Company estimate will be returned for repair? % of sales