NETCANADA is one of the fastest growing digital agencies in the north of Canada, producing cutting-edge websites and mobile applications for over 300 businesses from around the globe. It was started by two PhD students, who loaned money from their parents, rented space, purchased 30 used computers, and set up office. They hired other students to do the job and began advertising their services. Their business picked up and was in fact was so good that they were having troubles keeping up with demand. They had to hire more students and purchase more computers. After one year, however, they started to notice some costly problems. Websites were full of mistakes and mobile applications were often incomplete and incorrect. As a result, almost 40% (20 jobs per month) of all jobs had to be completely redone. Each job took approximately 10 hours and costed the company $250 (students were paid $25 per hour). What made the situation even worst was that the new hires were quitting after only a few months on the job. In the last six months they had lost an average of 4 employees a month. Every time an employee quit, that costed the company $10,000 to replace him/her and hire a new employee. So, to cut down these costs, NETCANADA decided to invest in a training program to reduce mistakes and improve employee retention. They contracted a training consultant to conduct a needs analysis, design and deliver a training program, and conduct the training evaluation. The training consultant provided estimates for the training cost, which are as follows: Needs analysis and training evaluation would each take 40 hours at a cost of $50 per hour. The fee to purchase the actual training program would be $5000 The training program would be for (8 hours) at a cost of $250 per hour training consultant fee. NETCANADA would also have to pay its 35 employees the following: o One full day (8 hours) of pay ($25 per hour) o Lunch that would cost $10 per employee o Tea and snacks at cost of $100 for the day The training would take place at NETCANADA, so the only cost for classroom space would be a portion of the cost associated with heating, lighting, and maintenance, which was estimated to be $200 for the day. Some administrative support work would be required to plan and prepare for the training. It would involve about three days (8 hours per day) of work on the part of NETCANADAs admin assistant, who is paid $20 an hour. The training consultant also provided estimates for the training benefits, which are as follows: 80% drop in mistakes and 90% reduction in turnover (employees leaving rate). In other words, instead of 20 jobs a month, only 4 jobs would have to be re-done; and instead of 4 employees quitting a month there would be on average fewer than one. With all these figures in front, NETCANADA wants to determine if the training program would be a worthwhile investment. Calculate the total cost of the training programby calculating the cost of each category and complete Table 1below. Calculate the benefit (Table 2), net benefit (Table 3), benefit-cost ratio (Table 4), and return on investment (Table 5) Based on your calculations answer30 multiple choice questions on D2L.

Table 1: Training Costs
Direct Cost	$
Training Consultant Fee	?
Lunch for trainess	?
Teas and Snacks for trainees	?
Total Direct Cost	?
Indirect Cost
Administrative costs	?
Total Indirect Costs	?
Developmental Costs
Needs Analysis	?
Training Program fee	?
Training Evaluation	?
Total Development Costs	?
Overhead Costs
Heating, lighting and maintenance	?
Total Overhead Costs	?
Trainee Compensation
Trainee Wages	?
Total Trainee Compensation	?
TOTAL TRAINING COST	?

Table 2: Training Benefit
Results Before Training	Results After training	Benefit
20 jobs per month had to be redone	?	?
Each job took 10 hours	?
Re-work Cost to the company = 20 10 25 = 5000	Re-work Cost to the company =?
On an average of 4 employees quit a month	90% reduction in turnover	36000
Each replacement costed 10000	90% of 40000 = 36000
Turnover cost to the company = 4 10000 = 40000	Turnover cost to the company = 40000-36000 = 4000
TOTAL BENEFIT		?

Table 3: Net Benefit

Net Benefit = Total Benefit - Total Training Cost

Net Benefit = ?

Table 4: Benefit-Cost Ratio (BCR)

BCR = Total Benefit Total training Cost

BCR = ?

Table 5: Return on Investment (ROI)

ROI = Net Benefit Total training Cost

ROI = ?

Based on these calculations, answer 30 multiple choice questions on D2L.