TDABC; Continuation of Problem 5-64
Suppose that in addition to the call center engagement outlined above, AS also provides the following annual service to 10 other clients:
Total Calls Answered
Average Number of Minutes/Call
Platinum Regional Bank
Healthwise Software Inc
Lesco Online Shopping
Babcock Insurance Service
Garcia Electric Supply and Service
Gilbert’s Online Garden Supplies
Financial Planning Services Inc
Porter’s Camera and Optical
What is the unused capacity at MSI, not assuming that AS becomes a customer? What are the implica- tions for the operating and marketing strategies at AS?
Assume that AS comes back to MSI with a revised proposal. The revised proposal includes call center activity as described in problem 5-64, but in addition, AS wants MSI to provide error-checking services for those who apply for loans at AS. MSI would use some of the call center staff, after appropriate train- ing, to complete the processing of the credit checks. AS expects the following service to be needed:
Processing Credit Checks
What would be the unused capacity with the revised proposal? What would be the cost of the unused capacity?