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. MMI 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 $4,203,555 Utilities 2,467,446 Leasing of facilities 1,965,513 Other expenses 817,036 $9,453,550 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 x 50 min x 60 staff x 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 Calls Average Number Inquiries Answered of Minutes/Call Total Time (minutes) Inquire re: rates and terms Autos 79,800 6 478,800 Trucks 31,800 7 222,600 Inquire re: loan application status Autos 44,800 5 224,000 Trucks 6,730 11 74,030 Inquire re: payment status Autos 38,800 3 116,400 Trucks 11,800 4 47,200 Inquire re: other matters Autos 28,800 11 316,800 Trucks 8,480 15 127,200 1,607,030 Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients: Total Calls Average Number of Answered Minutes/Call Platinum Regional Bank 233,800 6.0 Healthwise Software Inc. 66,768 5.0 Johnson Manufacturing 122,465 4.0 Lesco Online Shopping 233,556 6.0 Babcock Insurance Service 55,435 5.5 Garcia Electric Supply and 38,936 3.4 Service Gilbert's Online Garden Supplies 145,702 4.5 Financial Planning Services 68,973 11.0 Inc. Porter's Camera and Optical 198,240 5.5 Jordan Auto World Inc. 965,687 3.5 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: