Memorandum Regarding Extended Warranty Option



Memorandum Regarding Extended Warranty Option :




This Memorandum should be typed in the official letter-head of the company.


TO :


FROM :


DATE :


SUBJECT :


Your suggestion to offer an optional extended five-year warranty on all portable televisions warrants attention. The estimated Rs.40 00 000 annual revenues from extended warranty fees is certainly attractive.


My concern is whether we have enough resources in our service department to handle the increased repair volume. For instance, if we hire additional technicians to keep up with repairs, we might lose money on the extended warranties.


Would you be willing to conduct a study regarding the number of repairs and the type of repairs we could expect to do for extended warranty holders? Let me know how you plan to approach your study and what resources you’ll need. Thank you for your time and attention.




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Memorandum Regarding Extended Warranty Option
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