Should the bank outsource call center service and why

Assignment Help Managerial Accounting

Reference no: EM132741954

Problem 1: Assume that the depreciation expense on the customer call center equipment is $40,000. An outsourcing company offers to provide the same level (i.e., attending 100,000 calls a year) and quality of service for $480,000. Should the bank outsource its call center service based on just these numbers and the other data given in the case? You may ignore the qualitative and long-term concerns related to outsourcing and view this as a single-shot decision.

Problem 2: Suppose that the variable portion of servicing one retail customer is $4 (under the new Activity-Based-Costing system). If the bank responds to the new customer profitability numbers by letting one retail customer go, by how much would its total income for the year change?

Attachment:- BNB.zip

Reference no: EM132741954

Questions Cloud

Find the cost per equivalent unit for conversion costs : A total of P431,520 in conversion costs were incurred in the department during the month. Find the cost per equivalent unit for conversion costs for the month

Prepare journal entries for the required consolidation data : Prepare journal entries for the required consolidation data adjustments on 30 June 2020. Narrations (for journal entries) are not required.

How should hope city characterize grant agreement : In January 2019, City Hope received a 2-year, $800,000 grant from the Veterans of Foreign Wars (VFW) to provide specific career training to disabled veterans.

What is the final amount due on the loan : After 40 days, you make a partial payment of $1,000. What is the final amount due on the loan

Should the bank outsource call center service and why : Assume that the depreciation expense, Should the bank outsource its call center service based on just these numbers and the other data given in the case?

What total cost of the machinery and equipment account is : January 5: A slicing machine was purchased. A down payment of P250,000 was made and 5 annual installments of 200,000 are to be made beginning January 5, 2017.

Find how can buckeye managers use abc information : Find How can Buckeye's managers use ABC information to identify opportunities to trim costs while still satisfying customers' needs?

Strategic management plan : The next phase of your strategic management plan will require you to research your company's history and existing strategic goals.

Determine the issue price : Question - Maggie Enterprises issued $110,000 of 6%, 5-year bonds with interest payable semiannually. Determine the issue price

User Account

All Pages