Green Living provides energy audits in residential areas. The energy audits provide information to homeowners on the benefits of energy saving. A consultant from Green Living educates the homeowner about government rebates available for purchases and installations of energy saving systems. A successful energy audit results in the homeowner purchasing an energy saving system. Green Living does not install the energy saving system, but arranges for the installation with a local company. Green Living completes all necessary paperwork related to the rebates and financing. The company has identified three major activities that drive the cost of energy audits: identifying new contacts (that varies with the number of new contacts), travelling to and between appointments (that varies with the number ofkilometres driven); and preparing and filing rebate forms (that varies with the number of clerical hours). Actual costs for each of these activities in 2015 and 2016 are 2015 2016 $70.00 Consultant labour cost per hour $70.00 18.00 14.00 Average cost per new contact 1.10 1.30 Travel cost per kilometre Preparing and filing cost per clerical hour 18.20 19.00 In 2016, Green Living used value engineering to reduce the cost of the energy audits. Managers at Green Living want to evaluate whether value engineering has succeeded in reducing the target cost per audit by 5%