A monthly income statement for a small consulting company is shown below From these data calculate the following: a. Labor Utilization Rate b. Break Even Multiplier c. Effective Labor Multiplier. REVENUE $372,000 Sales 372,000 COSTS $276,000 Direct Costs $120,000 Salaries 120,000 $156,000 73,500 54,190 Indirect Costs Salaries Benefits Rent 5,000 Utilities 1,950 Professional Development 3,210 Depreciation 5,970 Supplies Used 1,820 Interest 1,760 Other 8,600 NET INCOME (PROFIT) $96,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
A monthly income statement for a small consulting company is shown below.
From these data calculate the following:
a. Labor Utilization Rate
b. Break Even Multiplier
c. Effective Labor Multiplier.
REVENUE
$372,000|
Sales
372,000
COSTS
$276,000
Direct Costs
$120,000|
Salaries
120,000
Indirect Costs
$156,000
Salaries
73,500
Benefits
54,190
Rent
5,000
Utilities
1,950
3,210
5,970
Professional Development
Depreciation
Supplies Used
1,820
Interest
1,760
Other
8,600
NET INCOME (PROFIT)
$96,000
Transcribed Image Text:A monthly income statement for a small consulting company is shown below. From these data calculate the following: a. Labor Utilization Rate b. Break Even Multiplier c. Effective Labor Multiplier. REVENUE $372,000| Sales 372,000 COSTS $276,000 Direct Costs $120,000| Salaries 120,000 Indirect Costs $156,000 Salaries 73,500 Benefits 54,190 Rent 5,000 Utilities 1,950 3,210 5,970 Professional Development Depreciation Supplies Used 1,820 Interest 1,760 Other 8,600 NET INCOME (PROFIT) $96,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education