Projected Billing question

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Christopher Boucher

January 28, 2021 13:05

This is from Hyperfine Architecture.

Let's say Sandra's Utilization Rate gets reduced from 70% to 65%. How do I reflect/calculate this change in the Billing Rate and Projected Billing columns?

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  Christopher Boucher January 28, 2021 15:52

  Thanks, Valerie. So I'm clear, the Billing Rate wouldn't change since we don't know what the multiplier is?

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  Christopher Boucher January 28, 2021 16:19

  Thanks, Valerie!

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  Christopher Boucher January 28, 2021 17:31

  1) 2080*.75 = 1560 chargeable hours
  2) 75000 direct salary /.75 = $100000 is the employees salary

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  Christopher Boucher January 28, 2021 17:32

  100000/2080 = $48 is the hourly rate for the employee

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  David Gaied January 28, 2021 17:57

  Valerie,

  Could you please explain how did you get the projected billing?

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  Christopher Boucher January 28, 2021 18:57

  According to AHPP, projected billing is found by multiplying the Hourly Billing Rate x (2080 hrs/year x utilization rate)

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  Christopher Boucher January 28, 2021 19:52

  When I plug the numbers in to the aforementioned formula, I get different answers. Yes, Valerie, please explain how you got the projected billing.

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  David Gaied January 28, 2021 21:06

  2080 x 0.75 = 1560hr

  1560 x 105 = 163,800 

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  Kimberly Orrego February 25, 2021 02:39

  Thank you Valerie! This was so helpful.

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  Sarah Al-Tekreeti December 18, 2022 04:43

  Where did the 3.2 net multiplier come from? Isn’t Net Multiplier = base labor/direct labor? I’m getting 1.4

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