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Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations...

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Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations upgrading thelr computer systems, and It backs each notebook It sells with a 90-day warranty against defects. Based on previous experlence, Computer Wholesalers expects warranty costs to be approximately 6% of sales. Sales for the month of December are $410,000. Actual warranty expenditures in January of

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