Question 5.2 Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average. Required Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
Question 5.2 Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average. Required Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 5.2
Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average.
Required
- Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.
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