Additional problem $02-02($Algo$)$

A health club has $2$ 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 $220$ leads a week. Approximately $9\%$ of the leads become members and pay a onetime fee of

$$100.$

Material costs are $$150$ per week, and overhead costs are $$1,100$ 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 $=,1\mathrm{.}93$ 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 $30$ more

leads per week. Material costs will increase by $$200$ 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 $=$

$2\mathrm{.}00$

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

increase

by