week 14

OLP 4404/5504

Level 4 Return on Investment (ROI) Assignment

Overview of the Assignment

For this assignment you will use the information provided in the scenario below to calculate the ROI for a training workshop. Complete the ROI Worksheet to calculate the ROI. Once you have determined the ROI for the training workshop you will then answer the questions below.

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?

Requirements for the Level 4 ROI Assignment

This paper will be in APA format. (1-inch margins, Times New Roman font, 12 point size, double spaced.) Correct grammar and complete sentences should be used for this paper. There is no required page length, but this paper will likely be 2-3 pages in length.

Assignment

To complete the ROI assignment:

1. Calculate the ROI for the efficiency training in the scenario (use the ROI Worksheet on the next page).

2. Write a paper describing the ROI for this scenario. Your paper will include:

· Cover page (use the cover page from your case study as a guide)

· Describe why using an ROI evaluation for the training workshop above is beneficial.

· Describe the overall benefit the efficiency training had for Super Sonic.

· Describe with whom will you share the results of the ROI evaluation and why.

· OPTIONAL: include any recommendations for the future you have based on this ROI (be sure to include why you are making these recommendations).

After you have completed your assignment, post it to your group for feedback.

ROI WORKSHEET

Use the information in the scenario to complete this worksheet to calculate the ROI.

Benefit Calculation:

2014 Annual Sales ($___________) – 2013 Annual Sales ($___________) = $__________

Total Benefits: $__________

Cost Calculation:

Additional boxes made from 2013 to 2014 (______) x Cost per box to be made ($__) = $______

Cost for Efficiency Training: $__________

Total Costs: $_____________

ROI Calculation:

ROI = Total Benefits ($_________) -- Total Costs ($_________) Total Costs ($__________)

= $_________ x 100

= ____%

ROI: _______%