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Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 7ISBN: 978-0077733773 Exercise 27
TDABC (Continuation of Problem 5-46) Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients:
Required
1. What is the unused capacity at MMI, not assuming that AS becomes a customer What are the implications for the operating and marketing strategies at AS
2. Assume that AS comes back to MMI with a revised proposal. The revised proposal includes call center activity as described in Problem 5-46, but in addition, AS wants MMI to provide error-checking services for those who apply for loans at AS. MMI would use some of the call center staff, after appropriate training, to complete the processing of the credit checks. AS expects the following service to be needed:
What would be the unused capacity with the revised proposal What would be the cost of the unused capacity
Required
1. What is the unused capacity at MMI, not assuming that AS becomes a customer What are the implications for the operating and marketing strategies at AS
2. Assume that AS comes back to MMI with a revised proposal. The revised proposal includes call center activity as described in Problem 5-46, but in addition, AS wants MMI to provide error-checking services for those who apply for loans at AS. MMI would use some of the call center staff, after appropriate training, to complete the processing of the credit checks. AS expects the following service to be needed:
What would be the unused capacity with the revised proposal What would be the cost of the unused capacity
Explanation
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Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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