A call center for insurance-company inquiries has a capacity of 2 million calls per year. The fixed cost of the center is $900,000 and the variable cost averages $1.90 per call. If the average revenue is $3.00 per call, determine the percentage of the capacity that must be placed each year for the center to just break even
A call center for insurance-company inquiries has a capacity of 2 million calls per year. The fixed cost of the center is $900,000 and the variable cost averages $1.90 per call. If the average revenue is $3.00 per call, determine the percentage of the capacity that must be placed each year for the center to just break even
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter9: Applications Of Cost Theory
Section: Chapter Questions
Problem 5E
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A call center for insurance-company inquiries has a capacity of 2 million calls per year. The fixed cost of the center is $900,000 and the variable cost averages $1.90 per call. If the average revenue is $3.00 per call, determine the percentage of the capacity that must be placed each year for the center to just break even. Solve manually please, no Excel <3 |
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