Q10 Macaljoy (12/07)

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November 3, 2013 at 4:40 pm #144456
hasanali95
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In part b ii) of this qs the requirement is to calculate the warranty provision
The std warranty units are 2000
And extended warranty units are 5000
So why have they taken 7000 units in the 1st yrs provision
Then 5000 units in the 2nd yrs provision?

Pls see the qs Macaljoy(12/07)
November 7, 2013 at 3:57 pm #144851
MikeLittle
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Because, in the first year, 7,000 units could potentially claim under the warranty whereas in the second year, only 5,000 units carry that extended 2 year warranty

OK?
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