Erickson Air is a large airline company that pays a customer relations representative $8,000 per month. The representative, who processed 3,000 customer complaints in January and 2,500 complaints in February, is expected to process 40,000 customer complaints during 2018.
Required
a. Determine the total cost of processing customer complaints in January and in February.
b. Explain why allocating the cost of the customer relations representative would or would not be relevant to decision making.