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24 December, 13:01

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.

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  1. 24 December, 14:05
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    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
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