document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1187470>Question 1187470</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 4.	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 3,000 potential leads a week from a list of 5,000. An average of 4 percent actually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week, and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation in fees generated per dollar of input.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #818454 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=818454\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you are looking for the  multi-productivity factor in fees generated per dollar of input.\r<BR>\n" );
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document.write( "your numerator will be dollars of revenue generated.\r<BR>\n" );
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document.write( "your denominator will be dollars of cost required.\r<BR>\n" );
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document.write( "your labor input will be 3 people * 25 dollars an hour each * 40 hours each = 3000 dollars per week.\r<BR>\n" );
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document.write( "your material costs are 1000 dollars per week.\r<BR>\n" );
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document.write( "your overhead costs are 9000 dollars per week.\r<BR>\n" );
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document.write( "your total input costs are 3000 + 1000 + 9000 = 13000 dollars per week.\r<BR>\n" );
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document.write( "each employee identifies an average of 3000 leads per week from a list of 5000.\r<BR>\n" );
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document.write( "an average of 4% of those leads actually signs up for the service, paying a one time fee of 70 per service.\r<BR>\n" );
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document.write( "each employee therefore generates .04 * 3000 * 70 = 8400 dollars in fees each week.<BR>\n" );
document.write( "multiply that by 3 employees to get 3 * 8400 = 25200 dollars a week generated in fees.<BR>\n" );
document.write( "that's your revenue.\r<BR>\n" );
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document.write( "your output is 25200 dollars of revenue.<BR>\n" );
document.write( "your input is 13000 dollars of cost.\r<BR>\n" );
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document.write( "you productivity factor would be 25200 / 13000 = 1.938461538 per average week.\r<BR>\n" );
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document.write( "that translates to 1.938461538 dollars of revenue for every 1 dollar of cost.\r<BR>\n" );
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document.write( "here's a reference on multi-factor productivity you might find interesting.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://smallbusiness.chron.com/multifactor-productivity-ratio-31922.html\" target = \"_blank\">https://smallbusiness.chron.com/multifactor-productivity-ratio-31922.html</a>\r<BR>\n" );
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