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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Revenue per employee

Eclipse Architects earned $1,800,000 during 20Y1 using 12 employees. During 20Y2, the firm reduced revenues to $1,440,000 and reduced the staff to nine employees.

  1. a. Determine the revenue per employee for each year.
  2. b. Interpret the results.

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 each year

Explanation

The calculation of revenue per employee for the year 20Y1 is as follows:

RevenueperEmployee=(Revenueearnedduringtheyear)No.ofemployees=$1,800,00012=$150,000peremployee

b.

To determine

To interpret: The results of both the year.

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