Scenario:
Super Sonic is a leading manufacturer of specialty cardboard boxes. In 2013, Super Sonic produced 500,000 cardboard boxes that year, which brought in $7,500,000 in annual sales. All employees completed efficiency training at the end of the year in 2013. After completing the efficiency training, Super Sonic produced 650,000 cardboard boxes for the 2014 year, which brought in $9,750,000 in annual sales. The cost to provide the training was $2,000. Each cardboard box is worth $15 in sales for the 2013 and 2014 year. Each cardboard box costs $5 to make in 2013 and in 2014. After completing the efficiency training, Super Sonic had a $2,000,000 increase in annual sales. What was Super Sonic’s ROI for conducting the training?
Using the above scenario to complete a ROI worksheet, I was given a visual of the actual impact a …show more content…
The Level 4 evaluation shows that at in 2014, an additional 150,000 boxes were manufactured with an increased cost of $750,000. These additional costs for manufacturing and training totaled $752,000, however, the increase in production increased their annual sales for 2014 by $2,250,000. The overall benefit was the final profit for 2014 of $1,498,000.
Super Sonic’s ROI for conducting the training is 199%, therefore the ROI is positive, warrantying the opportunity cost of the efficiency training. It is a cost-effective solution for Super Sonic. This is an excellent training, our return on investment for this training was 199%. This means that for every dollar we invested, our dollar was recovered and produced another $1.99 of benefit.
The results of the Level 4 ROI will be shared with clients and managers, because it shows how much the training contributed to the increased productivity. The managers will then keep the training in place as it is beneficial to the employee’s production and the organization’s success. According to McCain
Super Sonic is a leading manufacturer of specialty cardboard boxes. In 2013, Super Sonic produced 500,000 cardboard boxes that year, which brought in $7,500,000 in annual sales. All employees completed efficiency training at the end of the year in 2013. After completing the efficiency training, Super Sonic produced 650,000 cardboard boxes for the 2014 year, which brought in $9,750,000 in annual sales. The cost to provide the training was $2,000. Each cardboard box is worth $15 in sales for the 2013 and 2014 year. Each cardboard box costs $5 to make in 2013 and in 2014. After completing the efficiency training, Super Sonic had a $2,000,000 increase in annual sales. What was Super Sonic’s ROI for conducting the training?
Using the above scenario to complete a ROI worksheet, I was given a visual of the actual impact a …show more content…
The Level 4 evaluation shows that at in 2014, an additional 150,000 boxes were manufactured with an increased cost of $750,000. These additional costs for manufacturing and training totaled $752,000, however, the increase in production increased their annual sales for 2014 by $2,250,000. The overall benefit was the final profit for 2014 of $1,498,000.
Super Sonic’s ROI for conducting the training is 199%, therefore the ROI is positive, warrantying the opportunity cost of the efficiency training. It is a cost-effective solution for Super Sonic. This is an excellent training, our return on investment for this training was 199%. This means that for every dollar we invested, our dollar was recovered and produced another $1.99 of benefit.
The results of the Level 4 ROI will be shared with clients and managers, because it shows how much the training contributed to the increased productivity. The managers will then keep the training in place as it is beneficial to the employee’s production and the organization’s success. According to McCain