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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

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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 lt currently uses for handling Inquiries on these loons and is considering a change to MMIMMI 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 84.233.555 2.497.446 1.995,513 820.036 39,546,550 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 Call Answered Average Number Total Time (minutes) 80,100 32,100 480,600 224,700 Inguiries Inquire rat rates and tems Autos Trucks Inquire re: loan application status Autos Trucks Inquire re: payment status Autos Trucks Inquire ret other matters Autos Trucks 45,100 6,760 225,500 74,360 39,100 12,100 117,300 48,400 29,100 8,510 320,100 127,650 1,618.610 Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients: Average Number Minutes/call 6.0 5.0 4.0 Platinum Regional Bank Healthwise Software Inc. Johnson Manufacturing Lesco Online Shopping Babcock Insurance Service Garcia Electric Supply and Service Gilbert's Online Garden Supplies Financial Planning Services Inc. Porter's Camera and Optical Jordan Auto World Inc. Total Calls Answered 232.900 66,798 121.565 232.656 55, 465 38,966 144,802 69,003 197.340 964.787 5.5 Required: 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 call center staff, after appropriate training, to complete the processing of the credit checks. AS expects the following service to be needed: Reguest Processing Credit Cheeks Auto Truck Requests 45,490 12,390 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 is the level of idle capacity at MMI, not assuming that AS becomes a customer? (Round your intermediate calculations and final answers to the nearest whole number.) Idle Capacity minutes Required 2 >

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