Question

Erickson Air is a large airline company that pays a customer relations representative $8,000 per month. The representative, who processed 3,000 customer complaints in January and 2,500 complaints in February, is expected to process 40,000 customer complaints during 2018. Required Determine the total cost of processing customer complaints in January and in February. (Do not round intermediate calculations.)

Answer 1

Answer:

So total cost of processing Costumers in January is $7200

And total cost of processing Costumers in February is $6000

Explanation:

Total cost of Representative for the whole year = 8000×12 = $96,000

Total number of customers complaints processed in a year = 40,000

Therefore, cost of Processing per customer complaints = $\frac{96000}{40000}= 2.4$ per costumer complaint

Calculation of total cost of processing customer complaints:

Month Allocated Cost

So allocated cost in January = $2.4 ×3000 = $7200

And allocated cost in February = $2.4×2500 = $6000