A health club has two employees who work 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 froma list of 8,000 names. Approximately 10 percent of the leads become members and pay a onetime feeof $100. Material costs are $130 per week, and overhead costs are $1,000 per week. Calculate themultifactor productivity for this operation in fees generated per dollar of input.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
A health club has two employees who work on lead generation. Each employee works 40 hours a
week, and is paid $20 an hour. Each employee identifies an average of 400 possible leads a week from
a list 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.
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