Question: Please help answer a and b and c Question 11 (15 points) - Scroll further down to submit your answers A bank is considering two
Please help answer a and b and c
Question 11 (15 points) - Scroll further down to submit your answers A bank is considering two alternatives for handling its service calls in the next decade (you should treat this as one period). The projected number of service calls is 8,000,000. If the bank sets up its own service call center in the U.S.. the fixed cost is estimated to be $2,700,000, and the variable cost is calculated to be 32 cents per call. If the call service is outsourced to a foreign company, the fixed cost would be $240,000 and the unit charge would be 57 cents per call. (a)[5] What is the break-even number of service calls? (Rounded up if necessary) (b)[5] Would the bank set up its own service call center or outsource call handlings? (Enter 1 for Produce or enter O for Outsource) (C)[5] What would be the dollar amount that the bank can save by choosing the better option? (Cost difference between the two options)
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