Maybe I'm over analyzing but yeah I cant figure it out!
Assumptions:
Direct labor (Staff) costs = 60% of billing rate
Fixed costs = $600,000
Instructions (all amounts by department & firm where applicable):
1. Determine sales mix ratios
2. Determine contribution margin for each service
3. Determine contribution margin for enterprise product (E)
4. Breakeven point in hours by department
5. Margin of safety in hours and dollars by department
Assumptions:
Direct labor (Staff) costs = 60% of billing rate
Fixed costs = $600,000
Instructions (all amounts by department & firm where applicable):
1. Determine sales mix ratios
2. Determine contribution margin for each service
3. Determine contribution margin for enterprise product (E)
4. Breakeven point in hours by department
5. Margin of safety in hours and dollars by department
