Question
2. : a) A company used 7 sales persons working 160 hours each month for 12 months to sell 70 cabinets, 700 tables and 7000
2. : a) A company used 7 sales persons working 160 hours each month for 12 months to sell 70 cabinets, 700 tables and 7000 chairs during the year 2021. In 2022, the company used 6 sales persons working 190 hours each month for 12 months to sell 65 cabinets, 500 tables and 8000 chairs. In 2021, the company earned revenue of $800 for each cabinet, $200 for each table and $50 for each chair. In 2022, the price of each item went up by 7%. Find the sales force productivity in $ per hour for each year and then calculate the percentage change in productivity.
b) In 2021, the company as described in part a) leased one car for each sales person at a cost of $4,000 per month and paid an average compensation of $20 per hour. In 2022, the leasing cost went up by 10% per car per month and the average compensation was $22 per hour for the first 160 hours during any month with $33 per hour for additional (overtime) hours during any month. Find the multi-factor productivity for each year and the percent change in multi-factor productivity.
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