EHS Consulting Company

Client	Worker	Hours Billed	Amount Billed	Costs Billed	Total Billed	Costs Collected	Fees Collected
Alpha Co.	Acevedo	170.0	19,380.00	1,057.32	20,437.32	1,000.00	18,837.37
BravoCo.	Barger	143.5	16,933.00	502.98	17,435.98	500	16,425.01
Charlie Co.	Ekundayo	120.0	15,000.00	879.10	15,879.10	725.00	14,250.00
Delta Co.	Fitzgerald	137.0	16,502.50	378.26	16,880.76	375.00	15,842.40
Echo Co.	Fyffe	85.5	12,825.00	297.01	13,122.01	295.00	12,825.00
Foxtrot Co.	Gilbert	112.5	14,062.50	-0-	14,062.50	-0-	12,150.00
GolfCo.	Harmon	98.0	10,780.00	106.00	10,886.00	-0-	10,780.00
Hotel Co.	Hefner	122.0	14,274.00	5,397.32	19,671.32	4,587.72	14,274.00
India Co.	Kirchner	150.0	18,000.00	-0-	18,000	-0-	16,560.00
Juliett Co.	Madorma	123.5	14,202.50	157.29	14,359.79	-0-	14,202.50
Kilo Co.	Miller	102.0	11,730.00	347.54	12,077.54	340.00	11,268.04
Lima Co.	Myers	122.5	15,520.00	673.92	15,923.92	673.92	13,413.75
Mike Co.	Pellek	89.5	13,425.00	-0-	13,425.00	-0-	12,000.00
November Co.	Preston	156.0	16,770.00	347.21	17,117.21	298.50	16,818.71
Oscar Co.	Shahbazi	139.0	16,332.50	281.76	16,614.26	280.00	15,354.20
Papa Co.	Smith	147.5	16,593.75	197.51	16,791.26	-0-	16,178.91
Quebec Co.	St. John	150.0	16,200.00	523.81	16,723.81	523.81	16,000.00
Romeo Co.	Stachurski	206.0	22,866.00	437.64	23,303.64	-0-	22,608.85

Business has been good and the above represents a monthly effort on the part of your professional staff. You have decided that you want your people to bill on the average $110.00 per billable hour. Regarding costs, out of pocket costs are a pass through, that is you bill your costs to your clients without any markup and expect them to reimburse you for these costs you have incurred. At the end of the year you looked at September figures as a representative month to see how you are doing. The above numbers show what each person billed and what was collected on the account.

So you want to determine overall if in total numbers you averaged $110.00 per billable hour, and you also want to see if each person is averaging $110.00 per billable hour.

Your cost of operation for September was $254,665.13 excluding client pass through expenses.

The questions you are to answer are:

1. The overall cost per billable hour for your operation for the month?

2. The effective billable hour rate for each person?

3. Your goal is to have each employee bill 1,600 hours per year (thats 133.3 hours per

month). What do you do about those employees not meeting the 133.3 billable hours

per month?

4. What will you do regarding those clients not being billed at the $110.00 per billable

hour goal you have established?

5. What will you do regarding those clients not paying all their fees or costs?