Question
A health club has 4 employees who work on lead generation. Each employee contacts leads 20 hours a week and is paid $20 per hour.
A health club has 4 employees who work on lead generation. Each employee contacts leads 20 hours a week and is paid $20 per hour.
Each employee contacts an average of 150 leads a week. Approximately 12% of the leads become members and pay a onetime fee of $100.
Material costs are $180 per week, and overhead costs are $1,400 per week.
a.Calculate the multifactor productivity for this operation in fees generated per dollar of input.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b.The club's owner is considering whether to purchase a new software program that will allow each employees to contact 20 more leads per week. Material costs will increase by $320 per week. Overhead costs will remain the same.
Calculate the new multifactor productivity if the owner purchases the software.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c.How would purchasing the software affect productivity?(Enter the change in productivity as a percentage rounded to one decimal.)
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