It can be the basis by which you can successfully

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sources of revenue and costs and to estimate their levels can be an important business skill. It can be the basis by which you can successfully make the case for needed training for your employees. Critical Thinking Questions 8-19. Given your answers to the questions in the above reading, estimate the combined impact on the bottom line of direct and indirect savings generated by training. Extrapolate this number over a one- or two-year time period. 8-20. As you have read, training can increase revenue. The revenue could come from increased quality of the customer experience due to the impact of training. Consider, as an example, the following table of customer survey responses before and after training. The numbers are percentages of customers in each satisfaction category six months before and six months after employees received their training. A key change is a reduc-tion in the “Very dissatisfied—will never return” category of customers, which fell from 15 to 5 percent. a. What will this 10-percent change mean to the bottom line? Assume that the average revenue generated per month by a customer is $500.00. Also assume that you have 500 customers.
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What is the increased revenue due to the training for the past six months? c. What would be the revenue generated if you had 1,000 customers? Training can also impact the bottom line by reducing a number of direct costs. For example, employee costs may be reduced because fewer overtime hours will be needed due to improved performance. Another cost reduction can be seen in reduced returns, because training may reduce errors or dam-age that can occur when the product or service is provided. 8-21. Make assumptions about the costs in each of these direct cost categories and any other direct costs you can think of.
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  • Summer '16
  • Anomynous
  • Net Income, 5 percent, $500.00

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