3 4 This is a simple efficiency model for a service provider. 5 They work 8 hrs/day and 5 days per week. 6 Clients receive 45 minutes each of the provider's time 7 Gross revenue per client is $60 8 The service provider is compensated at 28% of revenue generated 9 There is 10% slack in the system due to inefficiency. 10 11 The owner wishes to reduce slack to increase profitability. 12 However the provider will demand greater compensation when they are worked harder. 13 Decrease Slack by 0.25% per step, down to 7.0% 14 Increase provider comp by 0.25% per step, up to 30% HINT: To complete the 15 Indicate the negotiation area where the owner will maintain a similar contribution margin. 16 Indicate a negotiation area where the owner may be able to strike an increase in contribution margi 17 Format your Two way table so it is well labeled and easily readable. HINT: Make sure you hav 18 19 20 20