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Analysis ewconnect.mheducation.com%252Fw/activity Help Market Makers Inc. (MMI) provides a range of services to its retail clients-customer service for inquiries, order taking credit checking for new

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Analysis ewconnect.mheducation.com%252Fw/activity Help Market Makers Inc. (MMI) provides a range of services to its retail clients-customer service for inquiries, order taking credit checking for new customers, and a variety of related services. Auto Supermarket (AS) is a large auto dealer that provides financing for the autos and trucks that it sells. AS has approached MMI to manage the Inquiries that come in regarding these loans. AS is not satisfied with the performance of the call center it currently uses for handling Inquiries on these loans and is considering a change to MMI, MM has been asked to estimate the cost of providing the service for the coming year. There are two types of loans at AS, one for autos and SUVs and another for light trucks. The loans for auto and truck buyers typically have different types of customers and loan terms, so the nature and volume of the inquiries are expected to differ. MMI would use its own call center to handle the AS engagement. The MMI call center's annual costs are as follows: Call center costs Salaries Utilities Leasing of facilities Other expenses $4,253,555 2,417, 446 1,915,513 812,036 $9,298,550 MMI's call center is staffed 12 hours per day with 60 call staff always available. Each staff member has a paid 10-minute break for each hour worked, and an unpaid 1-hour break for a lunch/dinner during each 12-hour shift. Thus, the call center has 12,045,000 minutes (11 hr 50 min 60 staff * 365 days) available for calls during the year. AS and MMI work together to estimate the number of calls and time required for each call, based on AS's prior experience with its current call center. Total Calla Answered Average Number of Minuten/Call Total Time (minutes) Inquiries Inquire ret rates and terms Autos Trucks Inquire rei loan application status Autos Trucka 79,300 31,300 475,800 219, 100 44,300 6,600 5 11 221,500 73.480 om%25263 Seved Required: 1. What is the level of idle capacity at MMI, not assuming that AS becomes a customer? 2. Assume that AS comes back to MMI with a revised proposal. The revised proposal Includes call center activity as described above but in addition, AS wants MMI to provide error-checking services for those who apply for loans at AS. MMI would use some of the ca center staff, after appropriate training, to complete the processing of the credit checks. AS expects the following service to be neede Processing Credit Checks Auto Truck Requests 45,530 12,430 Minutes Request 7 12 What would be the idle capacity with the revised proposal? What would be the cost of the idle capacity? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What would be the idle capacity with the revised proposal? What would be the cost of the idle capacity? (Round your Intermediate calculations to 2 decimal places and final answers to the nearest whole number.) minutes Revised Idle Capacity Cost Idle Capacity

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