Suppose that in addition to the call center engagement outlined above, AS also provides the following annual service to 10 other clients:

 

	Total Calls Answered	Avg. No. of Minutes/Call
Platinum Regional Bank	234,000	6.0
Healthwise Software Inc.	66,788	5.0
Johnson Manufacturing	122,665	4.0
Lesco Online Shopping	233,756	6.0
Babcock Insurance Service	55,455	5.5
Garcia Electric Supply and Service	38,956	3.4
Gilbert's Online Garden Supplies	145,902	4.0
Financial Planning Services Inc.	68,993	11.0
Porter's Camera and Optical	198,440	6.0
Jordan Auto World Inc.	965,887	3.0

Required

1. What is the unused capacity at MSI, 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 MSI with a revised proposal. The revised proposal includes call center activity as described in problem 5-64, but in addition, AS wants MSI to provide error-checking services for those who apply for loans at AS. MSI 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:

 

Processing Credit Checks	Requests	Min./request
Auto	45,600	10
Truck	12,500	18

What would be the unused capacity with the revised proposal? What would be the cost of the unusedcapacity?