Astore sells two types of toys, a and b. the store owner pays $8 and $14 for each one unit of toy a and b respectively. one unit of toys a yields a profit of $2 while a unit of toys b yields a profit of $3. the store owner estimates that no more than 2000 toys will be sold every month and he does not plan to invest more than $20,000 in inventory of these toys. how many units of each type of toys should be stocked in order to maximize his monthly total profit profit?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?