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A Company Is Able to Process 100 Customer Statements (Bills)

question 96

Essay

A company is able to process 100 customer statements (bills) per day per processing clerk. It has to process 270 customer statements per day. How many full-time processing clerks are needed if the company wants a processing clerk utilization rate as close to .90 as possible?


Definitions:

Certified Operators

Individuals who have received official recognition or certification to operate machinery or equipment according to set standards and regulations.

Fixed Cost

Financial obligations that are static and do not vary with production levels or sales numbers, such as rent, salary payments, and insurance fees.

Activity Level

A measure of the volume of production or operations, often used in cost accounting to allocate variable and fixed costs appropriately.

Mixed Cost

A cost that contains both variable and fixed cost elements, making its total expense vary with changes in the level of output.

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