A call center in India used by U.S. and U.K. credit card holders has a capacity of 1,400,000 calls annually. The fixed cost of the center is $775,000 with an average variable cost of $2 and revenue of $3.50 per call. (a) Find the percentage of the capacity that must be placed each year to break even.

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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. A call center in India used by U.S. and
U.K. credit card holders has a capacity of
1,400,000 calls annually. The fixed cost of
the center is $775,000 with an average
variable cost of $2 and revenue of $3.50 per
call.
(a) Find the percentage of the capacity
that must be placed each year to
break even.

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