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Calculate the cost of unused customer service capacity

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Reference no: EM133109385

Question - Xplornet Ltd. is an internet service provider. The company had 14,000,000 subscribers in 2021, and employed 18 customer service representatives. During 2021 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000. The company received 110,000 telephone calls from its customers in 2021 that lasted fifteen minutes on average.

Required - Calculate the cost of unused customer service capacity in 2021 with the assumption that customer service costs are engineered costs.

Reference no: EM133109385

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