Summary of the case This case talks about the cost benefit analysis of investing in a training program by any company. This is with regards to the comparison between the cost savings because of the enhanced performance of the trained employees versus the cost incurred in implementing the training plan. The case tries to figure out if training is beneficial in all kinds of scenarios and how well it can address the problem of customer dissatisfaction by enhancing the customer interaction skills of the employees. Critical thinking questions The increased revenue because of training is as follows: Reduction in the percentage of customers in very dissatisfied customers is from 15 % to 5 % so 10 % of the customers will not be very dissatisfied and they can be expected to come again to the company. So increase in the customer flow is 10 % of 500 which is 50. Each customer provides $500. So the total increase in revenue is 50 multiplied by 500 which is USD25000. For 1000 customer this increase will be USD 50,000. The reduction in direct costs is as follows: Name Cost (per year) Percent reduction Total reduction Operational 50,000 10 5000 Customer service 10,000 10 1000 Overtime 5,000 10 500 Wastage and errors 2,000 10 200 Total reduction 6700 The reduction in In-direct costs is as follows: Name Cost (per year) Percent reduction Total reduction Employee turn over 20,000 10 2000 Returned goods 5,000 10 500 Bad service 3,000 10 300 Negative brand image 7,000 10 700 Total reduction 3500 Question Given the answers above estimate the combined impact of direct and indirect savings generated by training on the bottom line. Extrapolate this number over a one- and two-year time period.