December 5, 2006
Mrs. Richelle M. Santos
415 Apartelle Gold St.
Paranaque, Manila
Dear Mrs. Santos:
Thank you for your letter of November 30 in regard to our work on machine 2085-DM.
Apparently there has been a misunderstanding concerning our charge of Php589 for this work. The charge was not for reconditioning the machine, but was made for adding certain extra parts to adapt it for your special needs. You will recall that when we were discussing the alteration of the machine, you agreed to assume a charge of Php589 in the event that the changes which you suggested did not prove satisfactory.
As a matter of fact, we had to build more parts than we anticipated, the cost of which – including material, labor, and overhead- amounted to Php245. Moreover, these special parts, which represent Php185 more than the specified amount, cannot be used by us or sold to any other customers.
We are quite sure that with this explanation you will understand the charge of Php589, and will authorize a check in payment. Our invoice should, of course, have made the details clear.
Sincerely yours,
Michelle L. Bugarin