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Janes customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 15,000 calls and incurred costs of
Janes customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 15,000 calls and incurred costs of $350,000. Of these calls, 1,800 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the wholesale operation are:
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