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Mendota Foods sells a variety of food products around the world. The company engags directly with individuals with an Interest in cooking by offering

Mendota Foods sells a variety of food products around the world. The company engags directly with individuals with an Interest in cooking by offering ideas and recipes in various staff blogs and podcasts. The management team at Mendota believes this drives brand loyalty and allows Mendota to charge a premium for its products. One Initiative that Mendota has been running for the last three years is a call center with staff who can provide help and answer questions about cooking In general and Mendota products in particular. The chief financial officer is Interested in learning more about the costs of this Initiative and how they vary with the demands placed on the center. To help answer the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12 months. During a discussion of those results, one of the cost analysts suggests that length of the calls (total hours) is probably a better driver of call center costs. The managers asked the analyst to collect the information and report on how It should be used. The combined data follow: Month 1 2 3 4 5 6 7 8 9 18 11 12 Number of Calls 60,750 67,158 60,250 62,000 45,250 74,150 52,100 65,608 77,500 45,250 66,700 69,900 Hours 15,860 17,148 16,000 14,500 12,620 20,000 13,180 17,548 21,150 10,400 18,460 18,820 Call Center Costs S 287,710 268,095 238,500 244,515 182,700 288,698 252,718 282,795 314,925 153,675 292,410 271,885

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