EZ Wheels Corporation manufactures kick scooters. The company offers a one-year warranty on all scooters. During 2017, the company recorded net sales of $1,900 million. Historically, about 4% of all sales are returned under warranty and the cost of repairing and or replacing goods under warranty is about 30% of retail value. Assume that at the start of the year EZ Wheels’ balance sheet included an accrued warranty liability of $16.3 million and at the end of the year, the accrued warranty liability balance was $12.4 million. How much did EZ Wheels pay during the year to repair and or replace scooters under warranty? Select one:A. 12.4 millionB. 22.8 millionC. 76.0 million

B. 22.8 million

Explanation:

Net sales = $1,900 million

Warranty liability incurred during the year = Net sales × Return percentage

                                                                      = $1,900 million × 4%

Warranty liability incurred during the year = $76 million

Scooters repair or replacement during the year = Warranty liability incurred × Repair and replacement percentage

                                                                                  = $76 million × 30%

Scooters repair or replacement during the year = $22.8 million

Therefore, EZ Wheels pay $22.8 million during the year to repair and or replace scooters under warranty. That is, the correct option is B. 22.8 million.

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.