Product I49V Product Z50U Sales $ 35,000 $ 40,000 Variable expenses $ 12,300 $ 28,200 The fixed expenses of the entire company were $39,110. The break-even point for the entire company is closest to

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?