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

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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 20EB: Trumpet and Trombone Manufacturing, Inc. began the year with a retained earnings balance of...

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

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

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