Question

what is a volume of 29,000 calls in a month, the costs of operating the helpline total $171,100. To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 31,200 calls in a month? (Assume that this call volume is within the relevant range.)

Answer 1

Calculate the requirements as follows: Particulars 1 Amount 2 Variable cost per call ($171,100/29,000) (A) 3 Number of calls (B) 5.90 31200 Cost of calls (A*B) 4 184080 Therefore, total cost of 31200 calls is $184,080. Note: Given that all costs are variable costs