The table shown below contains five measures under the column heading If and five measures under the column heading Then.

Required:

1. For each row in the table, write an if-then hypothesis statement that connects the two measures. Be sure to indicate whether each measure is expected to increase or decrease.

2. For each row in the table, provide one possible reason why a company that is able to improve each of the five “if” measures may not see the expected improvement in its associated “then” measure.

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If Then Employee turnover percentage Number of warranty claims Sales growth rate Percent of a customer's overall spending committed to our company Net operating income Non-value-added activity costs Customer defection rate Number of new products designed Non-value-added activity costs Number of process improvement suggestions per employee