Question

Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2018, 10 engineers, most of whom are recent graduates, handled 119,000 calls. The average yearly salary for software engineers was $58,000. Starting in 2019, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers’ salary to $73,000 per year. In 2019, eight engineers handled 127,000 calls.
Required:

1. Calculate the partial operational productivity ratio for both years.

2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.)

Answer 1

Answer:

a. 11900, 15875

b. 0.2052, 0.2175

Step-by-step explanation:

number of engineers in 2018 = 10

calls handled in 2018 = 119000

average salary in 2018 = 58000

number of engineers in 2019 = 8

calls handled = 127000

salary = 73000

a.) operational productivity = output/input

in year 2018 = 119000/10= 11900

in year 2019 = 127000/8 = 15875

b.) ratio for both years = output/amount spent

in year 2018 = 119000/10*58000 = 0.2052

in year 2019 = 127000/8*73000 = 0.2175