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Calculate the cost of unused customer service capacity

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Algonquin Highlands Telecom Ltd. is an internet service provider. The company had 9,000,000 subscribers in 2019, and employed 12 customer service representatives. During 2019 each customer service representative worked 7 hours per day for 241 days at a fixed annual salary of $35,000. The company received 60,000 telephone calls from its customers in 2019 that lasted ten minutes on average.

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Question 1a. Calculate the cost of unused customer service capacity in 2019 with the assumption that customer service costs are engineered costs.

Reference no: EM132465465

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