Question

Leas Corporation staffs a helpline to answer questions from customers. The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 25,000 calls in a month, the costs of operating the helpline total $452,500. To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 23,900 calls in a month? (Assume that this call volume is within the relevant range.

Answer 1

Answer:

Costs of operating 23,900 calls = $432,590

Explanation:

Given:

Number of calls per month = 25,000

Costs of operating calls = $452,500

Number of calls in another month = 23,900

Find:

Costs of operating 23,900 calls

Computation:

Cost of each call = $452,500 / 25,000

Cost of each call = $18.1 0

Costs of operating 23,900 calls = 23,900 ×  Cost of each call

Costs of operating 23,900 calls = 23,900 ×  $18.10

Costs of operating 23,900 calls = $432,590