A health club has 4 employees who work on lead generation. Each employee contacts leads 20...

 

Transcribed Image Text:

A health club has 4 employees who work on lead generation. Each employee contacts leads 20 hours a week and is paid $20 per hour. Each employee contacts an average of 150 leads a week. Approximately 12% of the leads become members and pay a onetime fee of $100. Material costs are $180 per week, and overhead costs are $1,400 per week. a. Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) MFP dollars of fees per dollar of input b. The club's owner is considering whether to purchase a new software program that will allow each employees to contact 20 more leads per week. Material costs will increase by $320 per week. Overhead costs will remain the same. Calculate the new multifactor productivity if the owner purchases the software. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) New MFP dollars of fees per dollar of input c. How would purchasing the software affect productivity? (Enter the change in productivity as a percentage rounded to one decimal.) Productivity will % with the new software by A health club has 4 employees who work on lead generation. Each employee contacts leads 20 hours a week and is paid $20 per hour. Each employee contacts an average of 150 leads a week. Approximately 12% of the leads become members and pay a onetime fee of $100. Material costs are $180 per week, and overhead costs are $1,400 per week. a. Calculate the multifactor productivity for this operation in fees generated per dollar of input. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) MFP dollars of fees per dollar of input b. The club's owner is considering whether to purchase a new software program that will allow each employees to contact 20 more leads per week. Material costs will increase by $320 per week. Overhead costs will remain the same. Calculate the new multifactor productivity if the owner purchases the software. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) New MFP dollars of fees per dollar of input c. How would purchasing the software affect productivity? (Enter the change in productivity as a percentage rounded to one decimal.) Productivity will % with the new software by

Answer rating: 100% (QA)

To determine the multifactor productivity MFP we must determine the revenue per dollar of input The inputs consist of labor material and overhead costs Total fees generated number of prospects multipl... View the full answer