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Exhibit 1 Warranty Claim Rates For Freezers and Refrigerators

The document contains two exhibits that provide warranty claim rates and estimated cost savings for various freezer and refrigerator products. Exhibit 1 shows that chest freezers have the lowest warranty rate at 1.8%, while upright freezers with frost-free technology have the highest at 5.8%. Exhibit 2 estimates the largest labor cost savings are for frost-free upright freezers and refrigerators at $0.58 per unit, while compact chest freezers have the lowest labor savings estimated at $0.043 per unit.

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Shiladitya Swarnakar
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50 views2 pages

Exhibit 1 Warranty Claim Rates For Freezers and Refrigerators

The document contains two exhibits that provide warranty claim rates and estimated cost savings for various freezer and refrigerator products. Exhibit 1 shows that chest freezers have the lowest warranty rate at 1.8%, while upright freezers with frost-free technology have the highest at 5.8%. Exhibit 2 estimates the largest labor cost savings are for frost-free upright freezers and refrigerators at $0.58 per unit, while compact chest freezers have the lowest labor savings estimated at $0.043 per unit.

Uploaded by

Shiladitya Swarnakar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Exhibit 1

Warranty claim rates for freezers and refrigeratorsa,b


Product Class Total Warranty Rate
Chest freezers 1.8%
Upright freezers (manual) 3.5
Upright freezers (frost free) 5.8
Refrigerators 6.9

a All warranty information is for the 12-month period starting on the original date of sale. It excludes customer education calls
b The average cost of a warranty claim was $180. Damage claims averaged $75, except in rare cases in which the product had t
Source: Company files

Exhibit 3
Estimated Cost Savingsa,b

Product Category Labour Savings


Compact chest freezers $0.043
Small chest freezers 0.375
Large chest freezers 0.420
Manual upright freezers 0.580
Frost-free upright freezers and refrigerators 0.580

a All savings estimates are in United States dollars per unit.


b Labour savings do not include the cost of fringe benefits (35%)
Source: Company files
orsa,b
Damage Warranty Rate
1.0%
1.6
1.8
2.8

of sale. It excludes customer education calls and installation or delivery errors.


xcept in rare cases in which the product had to be scrapped and replaced.

Material Saving
$0.455
-0.200
2.850
2.100
2.100

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