TDABC; Idle Capacity (Continuation of Problem 5-46) Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients:...

TDABC; Idle Capacity (Continuation of Problem 5-46) Suppose that in addition to the call center engagement outlined earlier, MMI also provides the following annual service to 10 other clients:

Required 1. What is the level of idle capacity at MMI, not assuming that AS becomes a customer? What are the implications for the operating and marketing strategies at AS? 2. Assume that AS comes back to MMI with a revised proposal. The revised proposal includes call center activity as described in Problem 5-46, but in addition, AS wants MMI to provide error-checking services for those who apply for loans at AS. MMI would use some of the call center staff, after appropriate training, to complete the processing of the credit checks. AS expects the following service to be needed: