Business, 19.05.2021 18:30 tmiller2862
A bank is considering two alternatives for handling its projected number of service calls in the next decade (you should consider this as one period). If the bank sets up its own service call center in the U. S., the fixed cost is estimated to be $3,200,000.00, and the variable cost is calculated to be 28 cents per call. If the call service is outsourced to a foreign company, the fixed cost would be $150,000.00, and the unit charge would be 48 cents per call. In the following calculations, monetary values should have 2 decimal places, and volumes of calls should be rounded up to whole numbers if necessary.
(a) What is the break-even number of service calls?
(b) Draw a diagram representing the in-house and outsourcing total costs which are functions of the number of service calls. Indicate the break-even number of service calls on the diagram.
(c) If the projected volume is 12,000,000 calls, would the bank set up its own service call center or outsource service call handlings? Explain your answer with calculations.
(d) If the projected number of service calls is 18,000,000 in the next decade, would the bank change its decision in part (c)? Again, explain with calculations.
Answers: 3
Business, 22.06.2019 14:40, smithnakayla19
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Business, 22.06.2019 21:10, chimwim7515
The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below. a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below. a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02
Answers: 3
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