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A bank is considering two alternatives for handling its projected number of service calls in the next decade (you can consider this as one period).
A bank is considering two alternatives for handling its projected number of service calls in the next decade (you can consider this as one period). If the bank sets up its own service call center in the U.5., the fixed cost is estimated to be 52,500,000.00, and the variahle cost is calculated to e 35 cents per call. If the call service is outsourced to a foreign company, the fixed cost would be 5120,000.00, and the unit charge would be 52 cents per call. In the following calculations, monetary values should be in dollars and have 2 decimal places, and volumes of calls should be rounded up to whaole numbers if necessary. (a)[2] What is the break-even number of service calls? 1 (bi[2] Oraw a diagram reprezenting the in-house and outsourcing total costs which are functions of the number of service calls. Indicate the break-even number of service calls an the diagram. (c)[3] If the projected volume is 13,000,000 calls, would the bank set up its own service call center or outsource service call handlings? Explain your answer with cost calculations and show the results in the sketch of part (h). (di[3] If the projected number of service calls is 15,000,000, would the bank change itz decision in part (c)? Again, explain with calculations and show the results in the sketch of part (b)
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