Safari co. was organized to sell a single product that carries a 45-day warranty against defects. engine 7% of the units sold will prove defective and require an average repair cost of $70 per unit. during safari's first month of operations, total sales were 1,200 units; by the end of the month, six defective units had been repaired. ering estimates indicate that he liability for product warranties at month-end should be oa. $5,460. b. $6,300. o c. $420. o d. $5,880