Major Seed Company has seen an increase in orders over the last year. Currently, they are incurring costs of $92,500 per year to process invoices and navigate exchanges, refunds and customer inquiries. They are considering hiring an additional clerk to handle the workload. Key Transactions Rate Per Minute for Supplying an Activity x Estimated Time Per Transaction = Cost per Transaction Original Invoice Entry $0.40 5 minutes $2.00 Processing Exchanges $0.40 3 minutes $1.20 Processing Refunds $0.40 4 minutes $1.60 Customer Phone Calls $0.40 10 minutes $4.00 If the department processed 40,000 original invoices, 2,000 exchanges, 1,000 refunds and 250 customer phone calls, should the company hire an additional clerk to handle the workload?  

Answer rating: 100% (QA)

To determine whether the company should hire an additional clerk we need to calculate the total cost ... View the full answer