The management chair is considering installing a voice-mail system. Monthly oper
ID: 454943 • Letter: T
Question
The management chair is considering installing a voice-mail system. Monthly operating costs are $23 per voice-mail box, but the system will reduce the amount of time the office assistant spends answering the telephone by 70%. The department has 32 telephones. According to the simulation above, what percent of the time is the office assistant on the telephone? Assuming that the assistant's time saved could be productively used elsewhere, estimate the labor savings. The assistant's salary (and overhead) is $3,000 per month. Installing a voice-mail system will save $ in labor costs. Should the chair order the voice-mail system?, as savings are equal to $.Explanation / Answer
Office assistant spends 60% of the time answering the phone. Installing the voice-mail system will save 70% of the assistant's phone answering time , which amounts to 60%*70%*$3,000 = $ 1,260 per month of productivity saved .
Labor cost saved = $ 1260
Operating cost of voice-mail system = 32*$23 = $ 736 per month
Yes, the Chair should order the voice-mail system, as the monthly savings are equal to $ 1260 - 736 = $ 524 per month .
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