Do Not Photograph OPMAN120 Exercise 1 Do Not Copy Do Not Distribute (Productivity, Forecasting and Decision Tree) Prepared by Dr. Sy Siong Kiao for use by his students only. 1. A health club has two employees who work on lead generation. Each employee works 40 hours a week, and is paid $20 an hour. Each employee identifies an average of 400 possible leads a week from a list of 8,000 names. Approximately 10 percent of the leads become members and pay a one- time fee of $100. Material costs are $130 per week, and overhead costs are $1,000 per week. Calcu- late the multifactor productivity for this operation in fees generated per dollar of input. 2. The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer. Employees 4 Customers Processed/Day 36 IT T Unit A B C D 5 8 3 40 60 20 a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor produc- tivity rates for each unit. Expressed labor productivity is customers/employee. Istripute