Market Makers Incorporated (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 MML. 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: 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 ( 11hr50min60 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. Problem 5-46 (Algo) Time-Driven Activity-Based Costing (TDABC) in a Call Center [LO 5-3, 5-7] Required: 1. Determine the amount that MMI should propose to charge AS for the coming year using TDABC, assuming MMi desires a profit 30% of incurred cost. 2. Suppose that AS wants the proposal broken down by type of loan (auto, truck). What would the proposal look like now? Complete this question by entering your answers in the tabs below. Suppose that AS wants the proposal broken down by type of loan (outo, truck). What would the proposal look like now? (Round your intermediate caiculations to 2 decimal places and final answers to the nearest whole number. Round "Time markup to 2 declmal place.) Required: 1. Determine the amount that MMI should propose to charge AS for the coming year using TDABC, assuming MMI desires a profit of 30% of incurred cost. 2. Suppose that AS wants the proposal broken down' by type of loan (auto, truck). What would the proposal look like now? Complete this question by entering your answers in the tabs below. Suppose that AS wants the proposal broken down by type of loan (auto, truck). What would the proposat look llke now? (Round your intermodiate calculations to 2 decimal places and final answers to the nearest whole number, Round Time markup" to 2 decimal place.)
