Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the
Question:
Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2009, 10 engineers, most of whom are recent graduates, handled 100,000 calls. The average yearly salary for software engineers was $45,000. Starting in 2010, the firm retained and hired only software engineers with at least two years of experience. SOS raised the engineers' salary to $60,000 per year. In 2010, eight engineers handled 108,000 calls.
2006 | 2007 | |
Number of calls handled | 100,000 | 108,000 |
Engineers' salary | $ 45,000 | $ 60,000 |
Number of engineers | 10 | 8 |
Required
1. Calculate the partial operational productivity ratio for both years.
2. Calculate the partial financial productivity ratio for both years.
3. Did the firm make the right decision to hire only software engineers with at least two years' experience?
4. List other factors that should be considered in making the decision.
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins