Spencer tools would like to offer a special product to its best customers. however, the firm wants to limit its maximum potential loss on this product to the firm's initial investment. the fixed costs are estimated at $27,400, the depreciation expense is $1,700, and the contribution margin per unit is $6.75. what is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level?

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?