Question

Three clients (A, B, and C) use Babineaux Call Service’s call center. During October, Babineaux initiated four new equipment advancements. The following information indicates the cost and benefits of each service:


a. If the total cost of new equipment is allocated to all units benefited, what is the cost per unit and total cost allocated to each client? (Round to the nearest cent.)
b. If the cost of new equipment is allocated to clients benefited, what is the cost per client and the cost per call benefited?
c. Assume that Babineaux Call Service charges the costs to the clients as indicated in (b). Client A estimates that a total of 30,000 calls will be processed by Babineaux over the life of the equipment advances. How should Client A allocate the new costs to itscallers?


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  • CreatedJune 03, 2014
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