Class, let’s say you operate English-speaking call centers for businesses that prefer to outsource this function. You have capacity to handle about 72,000 calls per week, which equates to about 15 mid-sized businesses using your call centers.,,Your competitor can handle about 33% of the volume you can handle.,,If your capacity is at 60% and your competitors’ capacity is at 90%, answer the following questions:,,1. If the cost structure of both businesses is about the same, and both businesses have both variable and fixed costs, which business is likely more profitable today?,,2. If the cost structure of both businesses is about the same, and both businesses have both variable and fixed costs, which business is more likely to offer a lower bid to a new business looking to outsource its call center needs?,,Support your reasoning,I only need one of the questions answered please doesn’t matter which one.
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