Chapter 26, Problem 26.17EX

Pareto chart for a service company

Three Rivers Inc. provides cable TV and Internet service to the local community. The activities, and activity costs of Three Rivers are identified as follows:

Activities	Activity Cost
Billing error correction	$ 60,000
Cable signal testing	140,000
Reinstalling service (installed incorrectly the first time)	40,000
Repairing satellite equipment	50,000
Repairing underground cable connections to the customer	25,000
Replacing old technology cable with higher quality cable	175,000
Replacing old technology signal switches with higher quality switches	150,000
Responding to customer home repair requests	30,000
Training employees	80,000
Total	$750,000

Prepare a Pareto chart of these activities.