128k views
1 vote
A health club has 3 employees who work on lead generation. Each employee contacts leads 20 hours a week and is paid $24 per hour. Each employee contacts an average of 210 leads a week. Approximately 8% of the leads become members and pay a onetime fee of $100. Material costs are $180 per week, and overhead costs are $1,000 per week. a. Calculate the multifactor productivity for this operation in fees generated per dollar of input

1 Answer

3 votes

Answer:

0.64 fees generated per dollar of input

Step-by-step explanation:

Fees generated per week = Average number of leads * Leads % conversion to members * One time fee per lead

Fees generated per week = 210 * 8% * $100

Fees generated per week = $1,680

Overhead cost = $1,000 per week

Material cost = $180 per week

Labor cost = Number of employees * Hours per week * Wage per hour = 3 * 20 * $24 = $1,440

Multifactor productivity = Fees generated per week/(Overhead cost + Material cost + Labor cost)

Multifactor productivity = $1,680 / ($1,000 + $180 + $1,440)

Multifactor productivity = $1,680 / $2,620

Multifactor productivity = 0.6412214

Multifactor productivity = 0.64 fees generated per dollar of input

User Dedek
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.