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Rocket Data Ltd

question 102

Essay

Rocket Data Ltd.is an internet service provider.The company had 14,000,000 subscribers in 2019, and employed 18 customer service representatives.During 2019 each customer service representative worked 7 1/2 hours per day for 236 days at a fixed annual salary of $42,000.The company received 110,000 telephone calls from its customers in 2019 that lasted fifteen minutes on average.Required:
Calculate the cost of unused customer service capacity in 2019 with the assumption that customer service costs are engineered costs.


Definitions:

Capital Stock

The total amount of physical goods and financial assets that contribute to the production of goods and services in an economy.

Intangible Assets

Non-physical assets such as patents, copyrights, brands, and goodwill that have value for a business.

Inventories

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Professional Development

Activities that improve and increase capabilities of professionals through the acquisition of skills and knowledge, often related to their career.

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