Blue Ray is a local cable company that installs cable television, internet, and telephone systems for customers in a three-county area. Jack Ryder, the head of operations, has recently learned about ABB and wants to use it to study the work done by his technicians in the field. He asks two of his technicians, Joel and Andy, to prepare the standard ABB report. Both technicians make $45,000 per year. The results of this study are given in the following two tables.

REQUIRED:

a. Joel processes 1,500 new installations and 500 repairs, while Andy processes 1,600 new installations and 600 repairs. What is the activity cost for each individual for these two tasks?

b. Which employee do you think should be made the model for the company? Why? Can you build a business case to make your argument clearer? Please do so.

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Joel Coward Salary Andy Remains Salary Activity % of Time $45,000.00 % of Time Adivity Install cable systems $45,000.00 Install cable systems 40% $18,000.00 50.0% $22,500.00 Repair cable systems 20% $9,000.00 Repair cable systems 25.0% $11,250.00 Drive to work site 10% $4,500.00 Drive to work site 10.0% $4,500.00 Attend quality team meetings Answer customer cals Work with scheduling Attend other meetings 5% $2,250.00 Answer customer calls 5.0% $2,250.00 10% $4,500.00 Work with marketing 2.5% $1,125.00 Organize truck Attend meetings 10% $4,500.00 2.5% $1,125.00 5% $2,250.00 5.0% $2,250.00 100% $45,000.00 100% $45,000.00