Question

Niles and Cohen, CPAs earned $9,560,800 during 20Y4 using 68 employees. During 20Y5, the firm grew revenues to $10,828,800 and expanded the staff to 72 employees.

Required:

a. Determine the revenue per employee for each year.

	Revenue Per Employee
20Y4
20Y5

b. The growth in revenue was (less than/ more than) the growth in the number of employees; thus, the revenue per employee (deteriorated/improved) between the two years.

Answer 1

Solution :

( a )

Particulars		2014	2015
Revenues	A	$95,60,800	1,08,28,800
Number of employees	B	$68	$72
Revenue per Employee	A / B	$1,40,600	1,50,400

( b )

• Computation of growth in revenue = [ ( Revenue per employees in 2015 - Revenue per employees in 2014) / Revenue per employees in 2014 ] * 100

= [ ($1,50,400 - 1,40,600 ) / 1,40,600 ] * 100 = 6.97%

Therefore,

• The growth in revenue was 6.97% he growth in the number of employees; thus, the revenue per employee improved between the two years.

Thanks for the Question, Kindly Give me a like , It will Help me alot :)