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REQUIRED a. What was the annual salary cost of the live agents prior to benchmarking? b. What is the annual salary cost of the live agents after benchmarking? What is the cost savings in one year? Salary cost of the live agents after benchmarking s Cost savings in one year c. To determine the success (or failure) of the benchmarking process, what other financial and nonfinancial items would you consider? Classify each consideration as financial or nonfinancial = " 1. Over how many years would the company realize the cost savings? 2. How does the increase in chatbot usage affect customer satisfaction? 3. Did technology costs increase in order to improve the efficiencies of the chatbots? 4. What was the cost of the study? 5. What is the average time of resolution of the customer questions before and after the improvements?

REQUIRED a. What was the annual salary cost of the live agents prior to benchmarking? b. What is the annual salary cost of the live agents after benchmarking? What is the cost savings in one year? Salary cost of the live agents after benchmarking s Cost savings in one year c. To determine the success (or failure) of the benchmarking process, what other financial and nonfinancial items would you consider? Classify each consideration as financial or nonfinancial = " 1. Over how many years would the company realize the cost savings? 2. How does the increase in chatbot usage affect customer satisfaction? 3. Did technology costs increase in order to improve the efficiencies of the chatbots? 4. What was the cost of the study? 5. What is the average time of resolution of the customer questions before and after the improvements?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Target Costing The virtual help center for digital scanning equipment produced by High-Tech Company processes 1.2 million customer inquiries per year. Roughly 50% of the time, the chatbot can successfully resolve the customer question without the help of a live agent. Live agents are paid $22 per hour and stay on a call for six minutes on average. After High-Tech Company engaged in process benchmarking, the need for live agent intervention dropped by 15%. REQUIRED a. What was the annual salary cost of the live agents prior to benchmarking? b. What is the annual salary cost of the live agents after benchmarking? What is the cost savings in one year? Salary cost of the live agents after benchmarking: $ Cost savings in one year. $ c. To determine the success (or failure) of the benchmarking process, what other financial and nonfinancial items would you consider? Classify each consideration as financial or nonfinancial. 1. Over how many years would the company realize the cost savings? 2. How does the increase in chatbot usage affect customer satisfaction? 3. Did technology costs increase in order to improve the efficiencies of the chatbots? O 4. What was the cost of the study? 5. What is the average time of resolution of the customer questions before and after the improvements?
Transcribed Image Text:Target Costing The virtual help center for digital scanning equipment produced by High-Tech Company processes 1.2 million customer inquiries per year. Roughly 50% of the time, the chatbot can successfully resolve the customer question without the help of a live agent. Live agents are paid $22 per hour and stay on a call for six minutes on average. After High-Tech Company engaged in process benchmarking, the need for live agent intervention dropped by 15%. REQUIRED a. What was the annual salary cost of the live agents prior to benchmarking? b. What is the annual salary cost of the live agents after benchmarking? What is the cost savings in one year? Salary cost of the live agents after benchmarking: $ Cost savings in one year. $ c. To determine the success (or failure) of the benchmarking process, what other financial and nonfinancial items would you consider? Classify each consideration as financial or nonfinancial. 1. Over how many years would the company realize the cost savings? 2. How does the increase in chatbot usage affect customer satisfaction? 3. Did technology costs increase in order to improve the efficiencies of the chatbots? O 4. What was the cost of the study? 5. What is the average time of resolution of the customer questions before and after the improvements?
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