Question

19. (10 points) Barrington do not want to house customer service ce echnology Group handles customer service calls for companies who nters in-house. Barrington has five call handlers and per year. Each call handler can process 10,000 calls per year. Barringion 000. Variable cost per call taken is has developed a software that allows customers s get answers to their questions and complaints online, reducing the number of calls processed per year to 45 $1.50 a) What is Barrington's Actual Quantity (AQ)? b) What is the current Actual Usage of call reception capacity at Barrington? c) What is Barrington's Unused Capacity Variance?

HELP

Answer 1

ans 1 Actual quantity=5*10000 calls=		50000	calls
ans 2
Actual usage=45000
ans c Unused capacity variance is 50000-45000=5000 calls
If any doubt please comment