Question

Erickson Air is a large airline company that pays a customer relations representative $8,000 per month. The representative, who processed 3,000 customer complaints in January and 2,500 complaints in February, is expected to process 40,000 customer complaints during 2018. Required Determine the total cost of processing customer complaints in January and in February. (Do not round intermediate calculations.)

Answer 1

The cost of processing customer complaint  by customer relations representative of airline company Erickson Air can be determined by dividing monthly salary by the total complaints processed during the month.

What is the cost of processing complaint in january?

Per complaint cost x Total complaints will give us the total cost

Per complaint cost can be determined by dividing monthly salary by the number of complaints in that month.

$\rm per\: complaint\: cost = \dfrac{\ 8,000}{3,000} \\\\per\: complaint\: cost = \ 2.67$

Multiplying per complaint cost with the number of complaints will give us the total cost i.e.$\rm \ 2.67 \times 3,000 = \ 8,000$

Similarly , the total cost of processing complaints for the month of February will also be the same because the salary is same.

Therefore , the total cost in both the months will be $8,000 each for processing complaints.

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