# Revenue per employee Superior Cleaning Services, LLC, provides cleaning services for office buildings. The firm has 10 members in the LLC, which did not change between 20Y8 and 20Y9- During 20Y9, the business terminated two commercial contracts. The following revenue and employee information is provided: 20Y9 20 Y 8 Revenues (in thousands) $16,200$18,400 Number of employees (excluding members) 150 200 a. For 20Y9 and 20Y8, determine the revenue per employee (excluding members). b. Interpret the trend between the two years.

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

### Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

#### Solutions

Chapter
Section
Chapter 12, Problem 12.27EX
Textbook Problem

## Revenue per employeeSuperior Cleaning Services, LLC, provides cleaning services for office buildings. The firm has 10 members in the LLC, which did not change between 20Y8 and 20Y9- During 20Y9, the business terminated two commercial contracts. The following revenue and employee information is provided:   20Y9 20 Y 8 Revenues (in thousands) $16,200$18,400 Number of employees (excluding members) 150 200 a. For 20Y9 and 20Y8, determine the revenue per employee (excluding members). b. Interpret the trend between the two years.

Expert Solution

a.

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

To determine:  The revenue per employee for the year 20Y9 and 20Y8.

### Explanation of Solution

Solution:

The calculation of revenue per employee for the year 20Y9 is as follows:

Revenueâ€‰perâ€‰Employeeâ€‰=â€‰(Revenueâ€‰earnedâ€‰â€‰â€‰duringâ€‰theâ€‰year)No.â€‰ofâ€‰employees=â€‰$16,200,000150=$108,000â€‰â€‰perâ€‰employee

Expert Solution

b.

To determine

To interpret: The trend between the two years.

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