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The ABC Consulting Firm currently has 7 employees. The best-case situation is for the employees to be at 75% utilization.

The ABC Consulting Firm currently has 7 employees. The best-case situation is for the employees to be at 75% utilization. At 210 hours per month and a billing rate of $87 per hour, what is the maximum revenue that can be achieved in 1 month? Show calculations (2 points)

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Expert Solution

Number of employees = 7

Number of working hours in a month = 210 hours

Total number of person hours in a month = Number of employees * Number of working hours in a month

= 7*210 = 1470 hours

Utilization rate = 75%

Total number of effective person hours in a month = Utilization rate * Total number of person hours in a month

= 75% * 1470 = 1102.5 hours

Billing rate = $87 per hour

Maximum revenue in 1 month = Billing rate * Total number of effective person hours in a month

= 87 * 1102.5 = $95,917.50

jeff jeffy answered 2 years ago
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