- Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:
Activities |
Activity Cost |
Billing error correction |
$60,000 |
Cable signal testing |
140,000 |
Reinstalling service (installed incorrectly the first time) |
40,000 |
Repairing satellite equipment |
50,000 |
Repairing underground cable connections to the customer |
25,000 |
Replacing old technology cable with higher quality cable |
175,000 |
Replacing old technology signal switches with higher quality switches |
150,000 |
Responding to customer home repair requests |
30,000 |
Training employees |
80,000 |
Total |
750,000 |
Prepare a Pareto chart of these activities.
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How did you calculate the percentages? And how did you calculate the cumulative costs?
How did you calculate the percentages? And how did you calculate the cumulative costs?
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