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b. Using the high-low method, estimate call center costs for a month when call center volume is expected to be 62,250 calls. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount. > Answer is complete but not entirely correct. Call center costs $ 238,675

b. Using the high-low method, estimate call center costs for a month when call center volume is expected to be 62,250 calls. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount. > Answer is complete but not entirely correct. Call center costs $ 238,675

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter28: The Balanced Scorecard And Corporate Social Responsibility
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Problem 3E: Eat-n-Run Inc. owns and operates 10 food trucks (mobile kitchens) throughout metropolitan Los...
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Mendota Foods sells a variety of food products around the world. The company engages directly with individuals with an interest in cooking by offering ideas and recipes in various staff blogs and podcasts. The management team at Mendota believes this drives brand loyalty and allows Mendota to charge a premium for its products. One initiative that Mendota has been running for the last three years is a call center with staff who can provide help and answer questions about cooking in general and Mendota products in particular. The chief financial officer is interested in learning more about the costs of this initiative and how they vary with the demands placed on the center. To help answer the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12 months. The data follow: Month Number of calls 1 2 3 4 5 6 7 8 9 10 11 12 Required: 60,750 67,150 60,250 62,000 45,250 74,150 52,100 65,600 77,500 45,250 66,700 69,900 Call center costs $ 287,710 268,095 238,500 244,515 182,700 280,690 252,710 282,795 314,925 153,675 292,410 271,885
Transcribed Image Text:Mendota Foods sells a variety of food products around the world. The company engages directly with individuals with an interest in cooking by offering ideas and recipes in various staff blogs and podcasts. The management team at Mendota believes this drives brand loyalty and allows Mendota to charge a premium for its products. One initiative that Mendota has been running for the last three years is a call center with staff who can provide help and answer questions about cooking in general and Mendota products in particular. The chief financial officer is interested in learning more about the costs of this initiative and how they vary with the demands placed on the center. To help answer the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12 months. The data follow: Month Number of calls 1 2 3 4 5 6 7 8 9 10 11 12 Required: 60,750 67,150 60,250 62,000 45,250 74,150 52,100 65,600 77,500 45,250 66,700 69,900 Call center costs $ 287,710 268,095 238,500 244,515 182,700 280,690 252,710 282,795 314,925 153,675 292,410 271,885
b. Using the high-low method, estimate call center costs for a month when call center volume is expected to be 62,250 calls. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount. > Answer is complete but not entirely correct. Call center costs S 238,675 x
Transcribed Image Text:b. Using the high-low method, estimate call center costs for a month when call center volume is expected to be 62,250 calls. Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount. > Answer is complete but not entirely correct. Call center costs S 238,675 x
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