Atlantic Resorts Operates a Centralized Call Center for the Reservation

question 134

Essay

Atlantic Resorts operates a centralized call center for the reservation needs of its time-share units.Costs associated with use of the center are charged to the time-share group (Luxury,Standard,and Budget)where a reservation is made on the basis of time spent on a call.Due to recent increased competition in the time-share business,the company has decided that it is necessary to more accurately allocate its costs to price its services competitively and profitably.During the current period,the use of the call center for each group was as follows (in thousands of seconds for time usage and in number of reservations): $$\begin{array} { | l | r | r | } \hline \text { Division } & \text { Time Usage } & \begin{array} { r } \text { Number of } \\\text { Resenations }\end{array} \\\hline \text { Luxury } & 500,000 & 50,000 \\\hline \text { Standard } & 2,000,000 & 300,000 \\\hline \text { Budget } & 1,500,000 & 250,000 \\\hline\end{array}$$
During this period,the cost of the computer center amounted to $1,760,000 for personnel and $1,240,000 for equipment and other costs.Required:
Determine the allocation to each of the divisions using (round all decimals to three places):
a.a single rate based on time used.b.multiple rates based on time used (for personnel costs)and number of reservations (for equipment and other cost).

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Definitions:

Positive Reinforcement

A process in psychology where a behavior is followed by a reward or positive outcome, encouraging that behavior to be repeated in the future.

Desired Behavior

A specific form of behavior that an individual or organization aims to encourage or achieve, often through incentives or motivational techniques.

Consequence Introduction

The act of presenting outcomes or repercussions as part of decision-making processes, particularly in teaching and behavior management.

Organizational Learning

The process through which an organization acquires, develops, and transfers knowledge to adapt and improve its performance.