Sears designed a training program to improve tool and hardware sales. The two-hour program involved distance learning and was broadcast from the Sears training facility to 50 salespersons at 10 store locations in the United States. The salespersons are paid $15 per hour. The program involved training salespeople in how to set up merchandise displays so they attract buyers' attention. Sales of tools and merchandise at the 10 stores included in the program averaged $5,000 per week before the program and $6,500 per week after the program. Program costs included:
Instructor $10,000
Distance learning (satellite space rental) 5,000
Materials ($100 per trainee @ 50 trainees) 5,000
Trainees' salaries and benefits (50 trainees with wages of $15 per hour in a 2-hour training program) 1,500
What is the Return on Investment (ROI) from this program?