ASSIGNMENT #4 Training Costs Option 1: On-site Training Program
Cost Item (e.g. Training Program)	Calculations (if applicable)	Amount
Needs analysis and training evaluation	20 hours x 100 dollars	$2,000
Training program purchase fee	5,000	$5,000
1 day training program	8 hours x 200 dollars	$1,600
1 day of pay for 25 employees	8 hours x 15 dollars = $120 120 x 25 employees	$3,000
Lunch for 25 employees	10 dollars lunch x 25 employees	$250
Coffee and snacks	50	$50
Classroom space	100	$100
2 days of pay for administrative assistant	16 hours x 15 dollars	$240
Total Costs for Option 1	$12,240

ASSIGNMENT #4 Training Costs Option 2: E-Learning
Cost Item (e.g. Training Program)	Calculations (if applicable)	Amount
E-learning program		$25,000
Total Costs for Option 2	$25,000

Assignment #4 - Benefit Calculations Option 1: On-site Training Program
	Calculations	Totals
Jobs that need to be redone per month and associated cost BEFORE TRAINING	20 jobs per month. Each job takes 10 hours. 10 hours x 15 employee pay =150 150 x 20 jobs = 3,000 3,000 + 150 company cost	$3,150
Employee turnover per month and associated cost BEFORE TRAINING	Lost 4 employees every month for 6 months 4 x 6 = 24 employees lost 5,000 dollars x 24 new employees	$120,000
Total monthly cost of job errors AFTER TRAINING	Four 10 hour jobs per month 10 hours x 15 employee pay = 150 150 x 4 jobs	$600
Total monthly cost of turnover AFTER TRAINING	1 employee quit every month for 6 months 1 x 6 = 6 employees lost 5,000 dollars x 6 new employees	$30,000
Total monthly financial benefit/savings	Redone jobs: 3,150 600 = 2,550 Turnover: 120,000 30,000 = 90,000 Total = $92,550	$92,550

Assignment #4 - Benefit Calculations Option 2: E-Learning Program
	Calculations	Totals
Jobs that need to be redone per month and associated cost BEFORE TRAINING	10 hours x 15 employee pay = 150 150 x 20 jobs = 3,000 3,000 + 150 company cost	$3,150
Employee turnover per month and associated cost BEFORE TRAINING	4 x 6 = 24 employees lost 5,000 dollars x 24 new employees	$120,000
Total monthly cost of job errors AFTER TRAINING	0.9 x 20 = 18 jobs done correctly 2 jobs to be redone Two 10 hours jobs per month 10 hours x 15 employee pay = 150 150 x 2 jobs	$300
Total monthly cost of turnover AFTER TRAINING	0.4 x 24 = 10 employees lost 5,000 x 10 new employees	50,000
Total monthly financial benefit/savings	Redone jobs: 3,150 300 = 2,850 Turnover: 120,000 50,000 = 70,000 Total = 72,850	$72,850

ASSIGNMENT #4 Vendor Selection & ROI
Vendor Selection	Select either E-Learning or In class
Recommendation	Justification/Logic for Decision (see grading rubric)
ROI	Return on Investment = Benefits Cost of program Cost of Program 92,550 5,000/5,000 = 18 18 dollar return on every dollar spent on training.

Here is the question, are my numbers correct?

1. Read the case study DATAIN on page 377 in Ch 11 in the text.

2. Using the details from the case study complete the templates provided in FOL. In your report you will: a. Provide a cost benefit analysis for each option. b. Recommend one option and explain why you feel it is the best solution. c. Provide ROI data for the option you are recommending.