A company offers ID theft protection using leads obtained from client banks. Thr

Question

A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employee identifies an average of 3000 potential leads a week from a list of 5000. An average of 4% actually signed up for the service, paying a one time fee of $70. Material costs are $1000 per week, and overhead costs are 9000 per week. Calculate the multi factor productivity for this operation and fees generated per dollar of input. A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employee identifies an average of 3000 potential leads a week from a list of 5000. An average of 4% actually signed up for the service, paying a one time fee of $70. Material costs are $1000 per week, and overhead costs are 9000 per week. Calculate the multi factor productivity for this operation and fees generated per dollar of input.

Explanation / Answer

Ans

Revenue=(3000x4/100)x70

Costs=Labor cost+overhead cost+material cost

=3000+9000+1000

Multi factor productivity=25200/(3000+1000+9000)

25200/13000=1.93

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