1. Calculate total working hours: Each representative works 7.5 hours per day for 236 days, so each representative works 7.5 * 236 = 1770 hours in a year. As there are 18 representatives, the total working hours for all representatives is 1770 * 18 = 31,860 hours. 2. Calculate total time spent on customer calls: Each call lasts 15 minutes, so the total time spent on calls is 15 * 110,000 = 1,650,000 minutes. Convert this to hours by dividing by 60 (since there are 60 minutes in an hour), so the total time spent on calls is 1,650,000 / 60 = 27,500 hours. 3. Calculate unused capacity: The unused capacity is the total working hours minus the total time spent on calls, which is 31,860 - 27,500 = 4,360 hours. 4. Calculate cost of unused capacity: Each representative is paid $42,000