Question
Lisa Doogy is examining customer-service costs in the southern region of Clery Products. Clery Products has more than 200 separate electrical products that are
Lisa Doogy is examining customer-service costs in the southern region of Clery Products. Clery Products has more than 200 separate electrical products that are sold with a 6-month guarantee of full repair or replacement with a new product. When a product is returned by a customer, a service report is prepared. This service report includes details of the problem and the time and cost of resolving the problem. Weekly data for the most recent 8-week period are as follows: (Click the icon to view the data.) Read the requirements. Requirement 1. Plot the relationship between customer-service costs and number of service reports. Is the relationship economically plausible? Begin by plotting the relationship between the customer-service costs and the number of service reports. (Enlarge the graph to maximum size and use the point tool button displayed to draw the graph.) Data table B - X Week Customer-Service Department Costs Number of Service Reports Week 1 $13,400 190 Week 2 20,700 270 Week 3 12,100 135 Week 4 18,500 360 Week 5 14,700 275 Week 6 22,000 465 Week 7 16,000 320 Week 8 21,300 350 Requirements - wee 1. Plot the relationship between customer-service costs and number of service reports. Is the relationship economically plausible? 2. Use the high-low method to compute the cost function, relating customer-service costs to the number of service reports. 3. What variables, in addition to number of service reports, might be cost drivers of weekly customer-service costs of Clery Products? epor ce re Print Done
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