Turtle Data Ltd. is an internet service provider. The company had 9,000,000 subscribers in 2019, and employed 12 customer service representatives. During 2019 each customer service representative worked 7 hours per day for 241 days at a fixed annual salary of $35,000. The company received 60,000 telephone calls from its customers in 2019 that lasted ten minutes on average.

Required:

Calculate the cost of unused customer service capacity in 2019 with the assumption that customer service costs are engineered costs.

(hint: I want ...

1. Available customer capacity,

2. Customer service hours actually used ,

3. Hours of unused customer service capacity

4. Customer service cost per hour

5. Cost of unused customer service capacity )