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Entity A operates outsourced call centers for retail and manufacturing companies. It is compensated through fixed minimum amounts plus variable amounts based on average customer wait times. Entity A negotiates a new one-year contact with a customer it has been serving for the past six years. The contract states that the fixed amount payable for the annual service is $12 million per year and $12 per calls for calls in excess of 1.2 million. Entity A is also able to earn an annual bonus payment of $1.2 million of the average annual customer wait time is less than 4 minutes. Entity A determines that its handling of service center calls is the only performance obligation in the contract. Based on previous experience, Entity A: (1) Expects the volume of calls this year to be 1.5 million; and (2) Estimates that there is a 75% probability that average wait times will be less than four minutes and a 25% chance it will exceed four minutes. Entity A uses the most likely amount to compute variable consideration. A. Determine the transaction price of the contract. B. At the end of the first quarter, Entity A has handled a total of 360,000 service center calls. It recognizes revenue based on the proportion of calls completed relative to the total number of calls expected. How much revenue will Entity A recognize at the end of the first quarter?
Describe a real-world (personal experience or news story) or fictional (book or movie) example of a leader making critical business decisions without the input of others in the organization. What were the positive and negative results of that type of..
How does culture fit into Wilson's argument about persistent urban poverty? Can you draw on Patillo's Black Picket Fences that considers his argument and explain how it applies?
Describe training you received when you started a new job. What was the method of delivery? Was the training effective? Did you complete a training evaluation? What would you have done differently?
Great comments, class. There are some good points here - one statement in the case is that "being late on projects only costs the company money". This seems obvious, but is it always true? The link between the triple constraints on projects is import..
However, in the given situation, the US firm's manufacturing processes is the firm's competitive advantage, and it is allowing the firm to be extremely profitable by cutting costs by 50%. Would you be concerned that the firm abroad would obtain insid..
How would operations strategy for a service industry be different if any from that for a manufacturing industry?
Identify a current topic in the news that is occupationally safety related and how the reporting of this topic can effect what actions are taken. Please provide details.
Highlight the most strategic issues, such as: reasons, trends, objectives, process, R&D, standardization, customization, design characteristics and implications, measurements, etc... based on the the iPad launched by Apple in 2010 as showed
Air Ruidoso, Ltd., operated a commuter airline and air charter service between Ruidoso, New Mexico, and airports in Albuquerque and El Paso. Executive Aviation Center, Inc., provided services for airlines at the Albuquerque International Airport. Can..
How can cash flows be smoothed out through the year at different types of seasonal resorts? Your essay response must be a minimum of 500 words in length, not counting references listed at the end or repeating of the question. All sources used, includ..
Bullseye Stores, Inc. is a large retailer of household and grocery merchandise with 3900 stores in the United States and Canada. At one Bullseye store located in a major shopping complex in Charlotte there are 40 permanently-installed checkout lanes...
Choose a professional nursing organization that relates to the nursing profession or your clinical practice area. Assuming that you are the chairperson of membership for the organization
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