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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’s 24-hour computer support task force. As you complete the following requirements, assume that the Geek Squad uses many of Best Buy’s existing resources such as its purchasing department and its buildings and equipment. Write a 2 page double spaced 12 pt Arial font in Microsoft Word. Start with an introduction and be sure to answer the following questions: 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?

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’s 24-hour computer support task force. As you complete the following requirements, assume that the Geek Squad uses many of Best Buy’s existing resources such as its purchasing department and its buildings and equipment. Write a 2 page double spaced 12 pt Arial font in Microsoft Word. Start with an introduction and be sure to answer the following questions: 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 – sale or customers served – increases.) The paper should end with a conclusion paragraph.

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