Aladdin's Customer Service Department Follows Up on Customer Complaints by Telephone

question 85

Multiple Choice

Aladdin's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division) , costs allocated to the wholesale operation should amount to:

• A) $0.
• B) $29.
• C) $85,260.
• D) $117,740.
• E) $203,000.

Comprehend how fixed and variable costs contribute to total cost.

Apply economic principles to determine profit-maximizing output levels.

Understand the concept of framing and its impact on decision making.

Grasp the basic units and structure of cognitive processes including concepts, prototypes, and heuristics.