Question

Campbell Air is a large airline company that pays a customer relations representative $3,850 per month. The representative, who processed 1,160 customer complaints in January and 1,430 complaints in February, is expected to process 23,100 customer complaints during 2018. Required Determine the total cost of processing customer complaints in January and in February.

Answer 1

Answer:

Total cost of Processing in January = $2,320

Total Cost of Processing in February= $2,860

Explanation:

The question is to determine the total cost of processing customer complaints in the months of January and February

The steps are as follows:

Salary of the Customer relations Representative monthly  $3,850

Annual Salary therefore ($3,850 x 12)                                   $46,200

The expected complaints in 2018                                          23,100 complaints

The cost per customer complaint

($46,200/231,00)                                                                      $2

Step 2: Calculate January

Number of customer complaints                1,160

Cost per complaint                                       $2

Total cost of Processing in January           $2,320

Step 3: Calculate February

Number of customer complaints                1,430

Cost per complaint                                       $2

Total cost of Processing in January           $2,860