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Smarmy Sales, Inc. ( SSI ) sells herbal remedies through its Web site and through phone reps. Over the past six years, SSI has started

Smarmy Sales, Inc. (SSI) sells herbal remedies through its Web site and through phone reps. Over the past six years, SSI has started to depend more and more on its Web site to generate sales.
The figures below show total sales, phone rep costs, and Web site costs for the past six years:
YEAR TOTAL SALES PHONE REP COSTS WEB SITE COSTS
2015 $4,790,000 $200,000 $50,000
2016 $5,750,000 $210,000 $65,000
2017 $6,900,000 $221,000 $85,000
20158 $8,280,000 $230,000 $110,000
2019 $9,930,000 $245,000 $145,000
2020 $11,920,000 $255,000 $190,000
a) Calculate productivity for the phone reps for each of the past six years. Interpret the results.
b) Calculate the productivity for the Web site for each of the past six years. Interpret the results.
c) Compare your results in parts a and b. What are the limitations of these single-factor productivity measures?
d) Now calculate a multifactor productivity score for each year, where the input is the total amount spent on both the phone reps and the Web site. Interpret the results. What can you conclude?

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