Question
The There 4 U Company (T4UC) commenced trading on 1 January 20X6.It was founded by Ken Matthews, who is the managing director of T4UC. The
The There 4 U Company (T4UC) commenced trading on 1 January 20X6.It was founded by Ken Matthews, who is the managing director of T4UC.
The initial aim of T4UC was to provide 'good quality' repairs andservicing to customers with domestic central heating systems anddomestic 'white goods' (white goods are items such as washing machines,tumble dryers, dishwashers, refrigerators and freezers).
T4UC provides contract services on an annual basis to individualcustomers who require insurance covering the repair and servicing oftheir central heating systems and domestic white goods. T4UC charge anannual contract fee and undertake all client repair and servicingrequirements without further charge.
Ken, who has a very strong background in sales and marketing,recruited engineers who came from a variety of engineering backgrounds.
Initial growth was prolific with Ken being very successful inestablishing a good sized customer base within the first two years ofthe business. Ken believes that staff utilisation is the key driver ofprofitability within T4UC.
T4UC set up a website where clients could access product manualsand other diagnostic data as well as being able to book an appointmentwith a service engineer.
The following data is available:
Year 20X6 20X7 20X8 Number of contracted 13,000 15,000 14,800 clients Number of visits to 23,400 30,000 32,000 contracted clients Number of clients gained via 200 100 5 recommendation Number of telephone calls 52,500 62,000 59,500 for product support received Number of telephone calls 52,000 60,000 58,000 for product support answered Number of product support 46,800 51,000 46,400 issues resolved by telephone
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