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 108,000 calls. The average yearly salary for software engineers was $47,000. Starting in 2019, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers’ salary to $62,000 per year. In 2019, eight engineers handled 116,000 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

Solution
	2018	2019
Number of calls handled	108000	116000
Salary to engineers	$47,000	$62,000
Number of engineers	10	8
1. Partial operation productivity	10800	14500
(Number of calls handled/Number of engineers)
2. Financial Operation productivity
Number of calls handled/(Salaries to engineers x Number of engineers)	$0.23	$0.23

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