Mire Corporation staffs a helpline to answer questions from customers. The costs of operating the helpline are variable with respect to the number of calls in a month. At a volume of 29,000 calls in a month, the costs of operating the helpline total $171,100.
-To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 31,200 calls in a month? (Assume that this call volume is within the relevant range.)
A) $171,100
B) $177,590
C) $184,080
D) $159,035

Question

Quizplus · Accepted Answer

We can use the formula for variable cost to find the cost at a different volume:
Cost1 / Volume1 = Cost2 / Volume2

Plugging in the given information: 
171100 / 29000 = Cost2 / 31200

Solving for Cost2: 
Cost2 = (171100 / 29000) * 31200 = $184,080 (rounded to the nearest dollar)

Therefore, the total cost of operating the helpline at a volume of 31,200 calls in a month should be $184,080. Choice C is the correct answer.

Mire Corporation Staffs a Helpline to Answer Questions from Customers