In order to operate its customer support activity, Sandhill's Amusement Park incurred $316800 in annual costs...

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In order to operate its customer support activity, Sandhill's Amusement Park incurred $316800 in annual costs (spread evenly amongst the four quarters of the year). Due to the large number of visitors to the park each year, Sandhill has been debating whether or not they can afford to bring on additional customer support staff members. While having an annual capacity of 528000 minutes, Sandhill is going to be utilizing Time-Driven Activity-Based Costing (TDABC). They have identified the following as their key activities within the customer support function: ticket sales, park admittance, customers assistance (once they enter the park), and processing customer refunds. Management has compiled information pertaining to the first two quarters of the year: Key Transactions Estimated Time per Activity Activity Handled in First Quarter Ticket Sales 4.1 minutes 18100 ticket sales Park Admittance 1.1 minute 12700 admittances Customer In-Park Assistance 3.6 minutes 4700 customers assisted Customer Refunds 6.1 minutes 2200 refunds Key Transactions Estimated Time per Activity Activity Handled in Second Quarter Ticket Sales Park Admittance Customer In-Park Assistance 1.1 minute 4.1 minutes. 19100 ticket sales 14200 admittances 3.6 minutes 4818 customers assisted In order to operate its customer support activity, Sandhill's Amusement Park incurred $316800 in annual costs (spread evenly amongst the four quarters of the year). Due to the large number of visitors to the park each year, Sandhill has been debating whether or not they can afford to bring on additional customer support staff members. While having an annual capacity of 528000 minutes, Sandhill is going to be utilizing Time-Driven Activity-Based Costing (TDABC). They have identified the following as their key activities within the customer support function: ticket sales, park admittance, customers assistance (once they enter the park), and processing customer refunds. Management has compiled information pertaining to the first two quarters of the year: Key Transactions Estimated Time per Activity Activity Handled in First Quarter Ticket Sales 4.1 minutes 18100 ticket sales Park Admittance 1.1 minute 12700 admittances Customer In-Park Assistance 3.6 minutes 4700 customers assisted Customer Refunds 6.1 minutes 2200 refunds Key Transactions Estimated Time per Activity Activity Handled in Second Quarter Ticket Sales Park Admittance Customer In-Park Assistance 1.1 minute 4.1 minutes. 19100 ticket sales 14200 admittances 3.6 minutes 4818 customers assisted

Answer rating: 100% (QA)

To calculate the cost per minute for each key activity and determine if Sandhills Amusement Park can ... View the full answer