Question: Quest Cable Company provides cable TV and Internet service to the local community. The activities and activity costs of Quest Cable are identified as follows:

Quest Cable Company provides cable TV and Internet service to the local community.

The activities and activity costs of Quest Cable are identified as follows:

Activities Activity Cost

Billing error correction ......................$ 30,000

Cable signal testing ........................80,000

Reinstalling service (installed incorrectly the first time) ...................65,000

Repairing satellite equipment ............................20,000

Repairing underground cable connections to the customer ..........20,000

Replacing old technology cable with higher quality cable .........105,000

Replacing old technology signal switches with higher quality switches ...120,000

Responding to customer home repair requests ..............35,000

Training employees .........................25,000

Total ..............................$500,000

Prepare a Pareto chart of these activities.


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