Qinto Company sells two types of products, Basic and Deluxe. The company provides technical support for users of its products, at an expected cost of $250,000 per year. The company expects to process 10,000 customer service calls per year.

Required

1. Determine the company’s cost of technical support per service call.

2. During the month of January, Qinto received 650 calls for customer service on its Deluxe model, and 150 calls for customer service on its Basic model. Assign technical support costs to each model using ABC.