Required information 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 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 $4,223,555 Utilities 2,487,446 Leasing of facilities 1,985,513 Other expenses 819,236 Total $9,515,550 MMI's call center is staffed 12 hours per day with 60 callstoff 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 hos 12,045,000 minutes (11 hour 50 minutes 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 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 Answered Average Number of Minutes/Call Total Time (minutes) 80,000 32,000 6 7 480,00 224,000 Inquiries Inquire re: rates and terms Autos Trucks Inquire re: loan application status Martas Trucks Inquire ret payment status Autos Trucks Inquirere other matters Autos Teucks 45,000 6,75e 5 11 225,000 74,250 39,000 12,000 3 4 117,000 48,000 29,000 8,500 11 15 319,000 127,500 1,614,750 Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients Platinue Regional Bank Healthuise Software Incorporated Johnson Manufacturing Lesco Online Shopping Babcock Insurance Service Garcia Electric supply and Service Gilbert's Online Garden Supplies Financial Planning Services Incorporated Porta's Camera and Optical Jordan Auto World Incorporated Total Cau Average Number of Answered Minutes/Call 214,000 6.0 66,788 5.0 122,665 4.0 233,756 6.0 55,455 5.5 38,956 3.4 145,902 4.5 68,992 11.0 198,440 5.5 965,887 3.5 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 Processing Credit Checks Requests Minutes/Request 45,600 Truck 12,500 What would be the idle capacity with the revised proposal? What would be the cost of the idle capacity? Auto 12 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 Hand Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 What would be the idle capacity with the revised proposal? What would be the cost of the idle capacity (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number) minutes Revised ide Capacity Cos de Capacity Red