need help with one probelm

John Martinez

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Sep 19, 2012
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The Training Director expects thatsupervisory training will reduce the cost of grievances and lawsuits filedagainst the company by 50%. The current estimate of these costs is judged to be$100,000 per year. The director has allocated $2,500 for course development and$500 each for the actual training of 20 supervisors, which includes all trainerand materials costs.
This discussion requires the followingthree activities:

  1. Calculate the ROI, (please “show your work”).
 
The Training Director expects thatsupervisory training will reduce the cost of grievances and lawsuits filedagainst the company by 50%. The current estimate of these costs is judged to be$100,000 per year. The director has allocated $2,500 for course development and$500 each for the actual training of 20 supervisors, which includes all trainerand materials costs.
This discussion requires the followingthree activities:

  1. Calculate the ROI, (please “show your work”).
It would be better for you to show your work. I presume you know that "ROI" is "return on investment". What would the investment be- the cost of "course development" plus the cost for each of twenty supervisors? What would the return be- 50% of the costs of grievances. Is "return on investment" to be calculated as a percent per year? Does each supervisor have to be retrained every year?
 
It would be better for you to show your work. I presume you know that "ROI" is "return on investment". What would the investment be- the cost of "course development" plus the cost for each of twenty supervisors? What would the return be- 50% of the costs of grievances. Is "return on investment" to be calculated as a percent per year? Does each supervisor have to be retrained every year?

yes the ROI is percent and yes retrained each year....thank you
 
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