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Question 1 Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains
Question 1 Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call center where customers can call in with technical questions about the installation and use Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and are shown below (all activities and costs are in thousands). Call center cost Month Support calls 1 37 2 53 3 45 $528 690 590 4 39 535 5 61 720 6 47 610 7 44 590 8 48 620 9 55 700 10 40 545 565 42 11 550 12 41 Required a) Estimate the monthly fixed costs and the unit variable cost per rapport call using the high-low estimation methods. b) Managers expect the call center at a monthly average 52 (thousand) support calls. What are the estimated monthly call center costs, assuming no inflations? c) Draw scattergraph relating call center costs to the number of support calls Question 2 What is price discrimination? Question 3 What are the common methods of cost estimation?
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