Digital River Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Digital Light are identified as follows:
Activities Activity Cost
Billing error correction ........................................................... $ 36,000
Cable signal testing ............................................................... 96,000
Reinstalling service (installed incorrectly the first time) .................... 30,000
Repairing satellite equipment .................................................... 36,000
Repairing underground cable connections to the customer .................. 18,000
Replacing old technology cable with higher quality cable .................. 168,000
Replacing old technology signal switches with higher quality switches .... 126,000
Responding to customer home repair requests ................................ 24,000
Training employees .............................................................. 66,000
Total ................................................................................ $600,000
Prepare a Pareto chart of these activities.