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13.6 A call center in India used by U.S. and U.K. credit card holders has a capacity of 1.400.000 calls annually. The fixed cost of
13.6 A call center in India used by U.S. and U.K. credit card holders has a capacity of 1.400.000 calls annually. The fixed cost of the center is $775,000 with an average variable cost of $2 and revenue of $3.50 per call. (a) Find the percentage of the capacity that must be placed each year to break even. (b) The center manager expects to ded- icate the equivalent of 500,000 of the 1.400,000 capacity to a new product line. This is expected to in- crease the center's fixed cost to $900.090. of which 50% will be al- located to the new product line. De- termine the average revenue per call necessary to make 500.000 calls the breakeven point for only the new product. How does this required revenue compare with the current center revenue of $3.50 per call
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