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is tn prevendon cost pius failure cost. 16. LO.2 (Benc hmarking) The call center of...

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Accounting

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is tn prevendon cost pius failure cost. 16. LO.2 (Benc hmarking) The call center of Wobegon Electric Company handles 1.2 mil on calls per ycar. The average call requires six minutes of operator time, and 40 per cent of the calls require a supervisor to be involved for at least half of the call time. Operators are paid $9 per hour, and supervisors are paid $15 per hour. After Wobegon Electric engaged in process benchmarking, call times were reduced by one minute, and the number of supervisor-involved calls were reduced by 15 percent. The benchmark ing study cost Wobegon Electric Company $200,000. a. What was Wobegon Electric's total labor cost and labor cost per call ar the call cen- b. What was Wobegon Electric's total labor cost and labor cost per call at the call cen- ter prior to benchmarking? ter after benchmarking? (Round up to the nearest penny.) c. If the new results are expected to continue for three years, was engaging in the benchmarking study profitable to Wobegon Electric Company? Show calculations

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