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Trekster Corrector guarantees its snowmobiles for three years. Company experience

Price: $1.99


Trekster Corrector guarantees its snowmobiles for three years. Company experience
indicates that warranty costs will add up to 4% of sales.

Assume that the Trekster dealer in Colorado Springs made sales totaling
$533,000 during 2012. The company received cash for 30% of the sales and notes
receivable for the remainder. Warranty payments totaled $17,000 during 2012.

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