1. Show Utilization Rate for all positions. Write down Gross Profit, and Average Labor Multiplier for Exercise 3

Labor Costs Title /Job Annual Hrly Total Utilizatio Direct Indirect Billing Labor Name Classification Salary (5) Salary Hours n Hours Hours Direct Indirect Rate Multiplier Gross Rev Maria Principal $150,000 72 2,080 40% 832 1,248 $60,000 $90,000 185 2.57 153,920 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 Assistan $60,000 29 2,080 25% 520 1,560 $15,000 $45,000 75 2.60 39,000 Beth Controller $80,000 38 2,080 b% 0 2,080 $0 680,000 0 0.00 0 $1,331,800 33,280 1,872 31,408 $86,250 ## 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 Total Gross Revenue 231,920 + 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. Direct Expenses Labor + The hourly rates are set based on your current contracts $86,250 Other + Look at the earnings before taxes before you start and determine your break even $45,000 multiplier, then add in the profit to detemine your target multiplier. Use this information to Subtotal $131,250 assist you in determining how much revenue each job classification must generate to meet your target Gross Profit Indirect Expenses + Adjust the utilization rates until you reach the target Gross Profit Labor ######## + Write down your gross revenue and your Average Labor multiplier Labor Burden $332,950 G&A $998,850 Subtotal TONIN Total Expenses Earnings before taxes Gross Profit % -1067.9% Average Labor Multiplier 2.69