Excom sells radios and each unit carries a two-year replacement warranty. the cost of repair defects under the warranty is estimated at 5% of the sales price. during september, excom sells 100 radios for $50 each. one radio is actually replaced during september. for what amount in september would excom debit product warranty expense?

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)