Sunny Energy Systems $($SES$)$ sells solar heating systems in residential areas of eastern Pennsylvania.

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Actual results for $2019$ and $2020$ for SES are:

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After experiencing high costs in $2019,$ SES used value engineering to reduce the cost of selling solar heating systems. Managers at SES want to evaluate whether value engineering has succeeded in reducing the selling cost per sale by the targeted $5\%$ in $2020.$

Read the requirements.

Requirement $1.$ Calculate the cost per sale in $2019.$

Determine the $2019$ total costs in the first column and the cost per sale in the second column. $($Round all

$\backslash$table$[[,\backslash$table$[[2019$ total$],[$costs$]],\backslash$table$[[2019$ cost per$],[$sale$]]],[$Cost of new contacts,$1470,1103],[$Travel costs,$1045,1050],[$Preparing and filir,$34500,35200],[$Total$,37015,37353]]$

Requirement $2.$ Calculate the cost per sale in $2020.$

$\backslash$table$[[,2020$ total costs,$\backslash$table$[[2020$ cost per$],[$sale$]]],[$Cost of new contacts,$1103,14],[$Travel costs,$1050,],[$Preparing and filing costs,$,],[$Total$,$E$,]]$

Requirement $3.$ Did SES achieve the target cost per sale in $2020?$ Explain.

Requirem

Calculate

Calculate

Did SES a

What chall cost and $h$

Data table

$\backslash$table$[[,\backslash$table$[[$Actual Results$],[$for $2019]],\backslash$table$[[$Actual Results$],[$for $2020]]],[$Sales of heating systems,$150,160],[$Number of new contacts,$210,245],[$Miles driven,$1,900,1,700]]$

More info

A successful sale results in the homeowner purchasing a solar heating system and obtaining rebates, tax credits, and financing for which SES completes all the paperwork. The company has identified three major activities that drive the cost of selling heating systems: identifying new contacts $($varies with the number of new contacts$)$; traveling to and between appointments $($varies with the number of miles driven$)$; and preparing and filing rebates and tax forms $($varies with the number of solar systems sold$).$ Actual costs for each of these activities in $2019$ and $2020$ are shown below:

$\backslash$table$[[,2019,2020],[$Average cost per new contact,$7\mathrm{.}00$$$,4\mathrm{.}50],[$Travel cost per mile,$0\mathrm{.}55,0\mathrm{.}75],[$Preparing and filing cost per new system,$230\mathrm{.}00,220\mathrm{.}00]]$