Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Benchmarking The call center of Wobegon Electric Company handles 1.32 million calls per year. The average call requires six minutes of operator time, and 40
Benchmarking The call center of Wobegon Electric Company handles 1.32 million calls per year. The average call requires six minutes of operator time, and 40 percent of the calls require a supervisor to be involved for at least half of the call time. Operators are paid $9 per hour, and supervisors are paid $15 per hour. After Wobegon Electric engaged in process benchmarking, call times were reduced by one minute, and the number of supervisor-involved calls were reduced by 15 percent. The benchmarking study cost Wobegon Electric Company $220,000. a. What was Wobegon Electric's total labor cost and labor cost per call at the call center prior to benchmarking? Total labor cost $1.584,000 Labor cost per calls 1.2 b. What was Wobegon Electric's total labor cost and labor cost per call at the call center after benchmarking? Note: Do not round until your final answer. Note: Round the labor cost per call to two decimal places (i.e., round 3.4555 to 3.46). Total labor cost $ 1.271,160 x Labor cost per calls 0.96 C. If the new results are expected to continue for three years, was engaging in the benchmarking study profitable to Wobegon Electric Company? Benchmarking study resulted in a $ 751,256 Net savings X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started