A health club has employees who worck on lead generation. Each employee works 40 hours aweek and is paid $ 20 an hour . Each employee identifies an average of 400 possible leads a week from alist of 8,000 names. Approximately 10 percent of the leads become members and pay a onetime fee of $ 100

Question

A health club has employees who worck on lead generation. Each employee works 40 hours aweek and is paid $ 20 an hour . Each employee identifies an average of 400 possible leads a week from alist of 8,000 names. Approximately 10 percent of the leads become members and pay a onetime fee of $ 100. Material costs are $ 130 per week , and overhead costs are $ 1,000 per week . Calculate the multifactor productivity for this operation in fees generated per dollar of input.

Accepted Answer

MFP =[latex]\frac{(Possible leads)(No . of workers)(Fee)(onversion percentage)}{Labor cost + Material cost + Overhead cost }[/latex]

[latex]==\frac{(400)(2)(\$ 100)(10)}{2(40)(\$ 20)+ \$ 130 + \$ 1,000 }=\frac{\$ 8,000}{\$ 2,730}=2.93 [/latex]

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