Question: Sears designed a training program to improve took and hardware sales. The two-hour program involved distance learning and was broadcast from the Sears training facility

Sears designed a training program to improve took and hardware sales. The two-hour program involved distance learning and was broadcast from the Sears training facility to fifty salesperson at ten store locations in the United States. The salespersons are paid $15 per hour. The program involved training salespeople in how to set up merchandise displays so they attract buyers' attention. Sales of tools and merchandise at the ten store included in the program averaged $5,000 per week before the program and $6,500 per week after the program. Program costs included:

Instructor $10,000

Distance Learning (satellite space rental) 5,000

Materials ($100 per trainee @ 50 trainees) 5,000

Trainees' salaries and benefits (50 trainees with wages of $15 per hour in a 2- hour training program) 1,500

1. What is the cost benefit ratio?

2. What is the payback (time)?

3. What is the return on investment (ROI) from this program?

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