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

question 59

Multiple Choice

Astro's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 10,000 calls and incurred costs of $312,000. Of these calls, 3,800 were for the company's wholesale operation; the remainder was for the retail division. Costs allocated to the retail division are:

• A) $0.
• B) $31,200.
• C) $118,560.
• D) $193,440.
• E) $203,000.

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Definitions:

Induce

To cause or bring about a certain action or condition, often through incentives or persuasion.

Unethical Behaviour

Actions or decisions that violate moral or professional principles, often resulting in harm or unfairness.

Defensiveness

The quality of being very anxious to challenge or avoid criticism; the act of defending oneself against perceived threat or critique.

Bounded Ethicality

The psychological process by which people come to engage in behaviour that violates their own ethical standards.