Best Buy offers services to customers that help them use products they purchase

Question

Best Buy offers services to customers that help them use products they purchase from Best Buy. One of these services is its Geek Squad, which is Best Buy%u2019s 24-hour computer support task force. assume that the Geek Squad uses many of Best Buy%u2019s existing resources such as its purchasing department and its buildings and equipment.

1. Identify several of the variable, mixed and fixed costs that the Geek Squad is likely to incur in carrying out its services. 2. Assume that Geek Squad revenues are expected to grow by 25% in the next year. How do you expect the costs identified in part 1 to change, if at all? 3. How is your answer to part 2 different from many of the examples discussed in the chapter? (Hint: Consider how the contribution margin ratio changes as volume %u2013 sale or customers served %u2013 increases.) I need a conclusion to this as well. Thank you in advance!

Explanation / Answer

Here is the word document for your answer, format was not coming out good here so I have given you dropbox link to download the answer.

https://www.dropbox.com/s/ejvxd1m724s08mf/Best%20Buy%20Geek%20Squad.docx

if you face any problems with the link, let me know in comments I will email you the file.

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