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Dear Sir,
In the question Macaljoy (12/07) requirement
b. (ii) why they have added the extended warranty with the standard one for Year 1 warranty calculation?Hi,
The warranty for one year applies to the units sold with the one year warranty (2,000 units) and the extended warranty (5,000 units), so they are added together to work out he value of the provision.
In the second year of the warranty only the 5,000 units as part of the extended warranty are included within the value of the provision as the original 2,000 are no longer covered by the warranty.
Thanks
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