Question

The customer sales activity includes activities such as order taking and refund processing. The cost of the assets and personnel to staff these activities is $91,560. With this level of staffing and assets, the company has 374,400 minutes of capacity per year within the customer sales activity. What is the rate to supply this activity per minute?

Answer 1

To find the rate to supply the customer sales activity per minute, divide the total cost of assets and personnel by the total minutes of capacity per year. In this case, the rate per minute is $0.244.

Step-by-step explanation:

To find the rate to supply the customer sales activity per minute, we divide the total cost of assets and personnel by the total minutes of capacity per year. In this case, the total cost is $91,560 and the total minutes of capacity is 374,400. So the rate per minute would be:

Rate per minute = Total cost / Total minutes of capacity

Rate per minute = $91,560 / 374,400 = $0.244 per minute