Question - At the beginning of 2011, Angel Corporation began offering a 2-year warranty on its products. The warranty program was expected to cost Angel 6% of net sales. Net sales made under warranty in 2011 were $209 million. Fifteen percent of the units sold were returned in 2011 and repaired or replaced at a cost of $5.30 million. Calculate the amount of warranty expense on Angel's 2011 income statement.