Business, 11.05.2021 22:10 banuelos90016

A small RF electronics company runs a web-based sales business model. To support customers trying to order products, the company has a small sales department (one person) that operates three telephone lines. They have a single person taking calls and the other two lines are used to put people on hold. If the sales rep is helping a customer and the other two lines have callers on hold, additional callers cannot get through. It is observed that most people who are unable to get through end up not ordering anything from the website. The average completed sale results in $70 profit for the company. Over the last 6 months, the business averages 6 calls per hour. The sales representative only requires an average of 3 minutes to service the call and complete the sale. Assume nobody on hold hangs up. What is the expected number of lost calls per hour? Estimate how much profit the company is losing as a result.

Three options are posed to address this issue. Determine the benefit of each and make a recommendation on which option to select or do nothing.

Option 1. Hire an additional sales representative to service calls. The existing sales rep charges $10/hour.
Option 2. Purchase an additional phone line for $300/month
Option 3. Hire an IT firm to fix the website. The changes are estimated to reduce the number of service calls from 6 per hour to 4 per hour. An IT firm provided a quote to accomplish this for $8,000.00

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 12:20

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount

Answers: 2

Answer

Business, 22.06.2019 17:00

Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to:

Answers: 2

Answer

Business, 22.06.2019 20:00

Which motion below could be made so that the chair would be called on to enforce a violated rule?

Answers: 2

Answer

Business, 22.06.2019 22:40

Rolston music company is considering the sale of a new sound board used in recording studios. the new board would sell for $27,200, and the company expects to sell 1,570 per year. the company currently sells 2,070 units of its existing model per year. if the new model is introduced, sales of the existing model will fall to 1,890 units per year. the old board retails for $23,100. variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,520,000 per year, and fixed costs are $1,420,000 per year.if the tax rate is 35 percent, what is the annual ocf for the project?

Answers: 1

Answer

You know the right answer?

A small RF electronics company runs a web-based sales business model. To support customers trying to...

Questions