EGR/BUS 445: Sample Profit & Loss Statement Labor Costs Title / Job Annual Hrly Total Direct Name Classification Salary ($) Salary Hours % Utilization Hours Hours Direct Indirect Indirect Hourly Labor Billing Multiplier Dale Maria Principal $150,000 72 2,080 40% 832 1,248 $60,000 $90,000 185 2.57 Gross Rev 153,920 Harry Project Manager $125,000 60 2,080 0% 0 2,080 $0 $125,000 175 2.91 0 Natalie Project Manager $115,000 55 2,080 0% 0 2,080 $0 $115,000 175 3.17 0 Yousef Project Engineer $101,000 49 2,080 0% 0 2,080 $0 $101,000 155 3.19 0 Nicole Project Engineer $95,000 46 2,080 0% 0 2,080 $0 $95,000 155 3.39 0 David Project Engineer $90,000 43 2,080 0% 0 2,080 $0 $90,000 155 3.58 0 Jonathon Staff Engineer $79,500 38 2,080 0% 0 2,080 $0 $79,500 115 3.01 0 Alberto Staff Engineer $76,000 37 2,080 0% 0 2,080 $0 $76,000 115 3.15 0 Sandy Staff Engineer $74,300 36 2,080 0% 0 2,080 $0 $74,300 115 3.22 0 Rebecca Staff Engineer $67,000 32 2,080 0% 0 2,080 $0 $67,000 115 3.57 0 Jennifer Staff Engineer $64,000 31 2,080 0% 0 2,080 $0 $64,000 115 3.74 0 Kit Staff Engineer $60,000 29 2,080 0% 0 2,080 $0 $60,000 115 3.99 0 Fran CAD Operator $50,000 24 2,080 0% 0 2,080 $0 $50,000 95 3.95 0 Gaspar Admin Asst $45,000 22 2,080 25% 520 1,560 $11,250 $33,750 75 3.47 39,000 Pat Executive Assistant $60,000 29 2,080 25% 520 Beth Controller $80,000 38 2,080 \0% 0 $1,331,800 33,280 1,872 1,560 2,080 31,408 $15,000 $45,000 75 2.60 39,000 $0 $86,250 $80,000 0 0.00 0 $1,245,550 Total Labor Revenue 231,920 Other Revenue 0 Exercise 3: Determine your Utilization Rates to achieve a labor multiplier that will yield a Gross Profit of 400,000 for the upcoming business year + The utilization rates will be the same for each job classification, understand the higher the position, the lower the utilization rate. Utilization rates for Principal and non-production staff are already set. + The hourly rates are set based on your current contracts + Look at the earnings before taxes before you start and determine your break even multiplier, then add in the profit to detemine your target multiplier. Use this information to assist you in determining how much revenue each job classification must generate to meet your target Gross Profit + Adjust the utilization rates until you reach the target Gross Profit + Write down your gross revenue and your Average Labor multiplier Indirect Expenses Labor Burden Labor $1,245,550 $332,950 G&A $998,850 Subtotal $2,577,350 Total Expenses $2,708,600 Earnings before taxes -$2,476,680 Total Gross Revenue 231,920 Direct Expenses Labor Other Subtotal $86,250 $45,000 $131,250 Gross Profit % -1067.9%