QUESTION 3 3 points A bealth club has 3 employees who work on lend generation. E
ID: 421577 • Letter: Q
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QUESTION 3 3 points A bealth club has 3 employees who work on lend generation. Each employee works 35 bours a week, and is paid S18 an hour Each employee identifies an average of 305 possible leads a week from a list of 8.000 names. Approximately 10 percent of the leads become members aud pay a one-time fee of $150. Material costs are $180 per week, and overhead costs are $988 per week. Caleulate the multifactor productivity for this operation in fees generated per dollar of input The multifactor produetivity for this operation in fees generated per dollar of inpat (round to 4 decimal places)Explanation / Answer
Since 10 percent of leads become members , number of members
= 10% of 305 possible leads
= 30.5 members
One time fee paid by each member = $1.5
Therefore, total revenue generated through collection of fees each week = $ 1.5 x 30.5 = $45.75
Total employee cost each week
= 3 employees x 35 hours/ week for each employee x $18 / hour wage
= $1890
Material cost = $180 / week
Overhead cost = $988 / week
Therefore ,
Total cost = Employee cost + Material cost + Overhead cost = $1890 + $180 + $988= $3058
Multifactor productivity in terms of operation fees generated per Dollar of input
= $45.75 / $3058
= 0.0149607 ( 0.0150 rounded to 4 decimal places )
THE MULTIFACTOR PRODUCTIVITY FOR THIS OPERATION IN FEES GENERATED PER DOLLAR INPUT = 0.0150
THE MULTIFACTOR PRODUCTIVITY FOR THIS OPERATION IN FEES GENERATED PER DOLLAR INPUT = 0.0150
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