Identifying and managing unused capacity (continuation of 12-18). Refer to Exercise 12-18.
1. Calculate the amount and cost of unused administrative capacity at the beginning of 2013, based on
the actual number of customers Ramiro served in 2013.
2. Suppose Ramiro can only add or reduce administrative capacity in increments of 250 customers. What
is the maximum amount of costs that Ramiro can save in 2013 by downsizing administrative capacity?
3. What factors, other than cost, should Ramiro consider before it downsizes administrative capacity?
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