Wilson publishing company produces books for the retail market. demand for a current book is expected to occur at a constant annual rate of 7200 copies. the cost of one copy of the book is $14.50. the holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. the equipment with which the book is produced has an annual production volume of 25,000 copies. wilson has 250 working days per year, and the lead time for a production run is 15 days. use the production lot size model to compute the following values:

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?