Exercise: Read the scenario (below) about a training program at Starbucks and calculate the return on training investment. You may submit as a word document, an excel spreadsheet, or a photo of your handwriting on a napkin. I want to see HOW you solved the problem. Post your ROI solution here.

Did you remember to include all costs? Did you calculate the benefits correctly? If you need to change your solution, post a "Revised Solution."

A barista training program at Starbucks focuses on getting the drink order correct. The goal of the training program is to reduce the number of times baristas need to do over a customer drink order. On average, do-overs cost Starbucks $2 each (including loss of discarded drink, extra time to serve customer, and impact on customer service). The training is delivered via on-demand video, which is approximately 12 minutes long. The fixed cost of creating the video was $63,000 (including training staff time, production costs, actors, etc.). The variable cost of the training program has been calculated by the training department in Seattle at $28 per barista (including their time away from work). Based on the trial run of the training program last year in certain stores, Starbucks estimated that baristas made an average of 42 fewer do-overs per year as a result of the training. If there are 90,000 baristas who will take the training this year, what is the estimated ROI of the program and is the training program worth the investment?

Would the training program be worth it if do-overs cost Starbucks 50 cents?