The company currently employs ten full-time members of staff who provide 35 hours of technical support per week and are expected to work 48 weeks in the year. What is the optimum mix of technical support packages that the company should provide and what profit will the company make based on the information provided?

 

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Techsupport NI Limited is a computer support company which provides online and personal computer technical support to a wide range of businesses and individuals. The support packages range from a simple online support to site visits. All staff are capable of providing support on any of the four support packages offered by the company. The forecast costs for the coming year and the expected demand for each of the support packages are estimated below: Simple Standard Deluxe Elite Support Support Support Support Package Package Package Package Number of support packages to be sold Annual price of package Expected inputs / costs: Computer time per package Technical support staff time per package Other variable overheads per package Fixed costs are expected to be £425,000 for the year. The cost of computer time per hour is £26 and the technical support staff are paid £14 per hour. 840 £280 910 £350 2 hours 4 hours £40 3 hours 4.5 hours £50 710 £450 4 hours 6.5 hours £65 650 £550 6 hours 8 hours £80 Techsupport NI Limited is a computer support company which provides online and personal computer technical support to a wide range of businesses and individuals. The support packages range from a simple online support to site visits. All staff are capable of providing support on any of the four support packages offered by the company. The forecast costs for the coming year and the expected demand for each of the support packages are estimated below: Simple Standard Deluxe Elite Support Support Support Support Package Package Package Package Number of support packages to be sold Annual price of package Expected inputs / costs: Computer time per package Technical support staff time per package Other variable overheads per package Fixed costs are expected to be £425,000 for the year. The cost of computer time per hour is £26 and the technical support staff are paid £14 per hour. 840 £280 910 £350 2 hours 4 hours £40 3 hours 4.5 hours £50 710 £450 4 hours 6.5 hours £65 650 £550 6 hours 8 hours £80

Answer rating: 100% (QA)

To determine the optimum mix of technical support packages and the profit the company will make we need to calculate the total cost and revenue for ea... View the full answer