Quicken Loans has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen-based cost improvement program. For 2017, assume that Quicken Loans incurred the following costs ($ millions):
$$\begin{array} { l r }
\text { Loan processing } & \$ 16,000 \
\text { Customer relations } & 1,500 \
\text { Printing, mailing, and postage } & 600
\end{array}$$ For the next two years, Quicken expects an increase in consumer loans of 5 percent annually with related increases in costs.
If the company has a continuous improvement goal of 2 percent each year, the budgeted amount for loan processing for 2018 will be:

Question

Quicken Loans has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen-based cost improvement program. For 2017, assume that Quicken Loans incurred the following costs ($ millions):
$$\begin{array} { l r } 
\text { Loan processing } & \$ 16,000 \
\text { Customer relations } & 1,500 \
\text { Printing, mailing, and postage } & 600
\end{array}$$ For the next two years, Quicken expects an increase in consumer loans of 5 percent annually with related increases in costs.
If the company has a continuous improvement goal of 2 percent each year, the budgeted amount for loan processing for 2018 will be:

Quizplus · Accepted Answer

The Answer of Quicken Loans has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen-based cost improvement program. For 2017, assume that Quicken Loans incurred the following costs ($ millions):
$$\begin{array} { l r } 
\text { Loan processing } & \$ 16,000 \
\text { Customer relations } & 1,500 \
\text { Printing, mailing, and postage } & 600
\end{array}$$ For the next two years, Quicken expects an increase in consumer loans of 5 percent annually with related increases in costs.
If the company has a continuous improvement goal of 2 percent each year, the budgeted amount for loan processing for 2018 will be:

Quicken Loans Has Been Displeased with the Costs of Servicing