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Design and Engineering consulting firms create project and business budgets based upon a Labor Multiplier Factor. Taking into account that information: What would expect your
- Design and Engineering consulting firms create project and business budgets based upon a Labor Multiplier Factor. Taking into account that information:
- What would expect your annual salary to be upon graduation? Convert that salary into an hourly rate (base on 2080 work hours annually)
- Now, what do you believe is a reasonable hourly rate at which your company will charge for your services, i.e. what rate (dollars) will the company bill out your services at?
- What factors did you consider/take into account when you determined your billing rate?
- What is a reasonable utilization rate for a staff engineer after graduating from college? Does it change one month, to 6 months, to 1 year after graduation?
- If your business is expected to have annual revenue of $19,385,000, Direct Labor Costs of $5,950,000, and achieve a Profit of 16%, answering the following and Show Your Work!:
- What would your total costs (i.e., total expenses) be?
- What would your Breakeven Multipler be?
- What would your Target Multiplier be?
- What is the difference between the Breakeven Multiplier and Labor Multiplier Factor (also known as the Target Multiplier)?
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