Revenue Factor is computed as Utilization Rate x Direct Salary Expense Ratio. For Amber with utilization 70% and Direct Salary Expense Ratio 3.0, what is the Revenue Factor?

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Multiple Choice

Revenue Factor is computed as Utilization Rate x Direct Salary Expense Ratio. For Amber with utilization 70% and Direct Salary Expense Ratio 3.0, what is the Revenue Factor?

Explanation:
Revenue Factor is found by multiplying how much of the time is billable (Utilization Rate) by how costly the direct salary is relative to revenue (Direct Salary Expense Ratio). Convert 70% to 0.70, then multiply by 3.0: 0.70 × 3.0 = 2.1. So the Revenue Factor is 2.1.

Revenue Factor is found by multiplying how much of the time is billable (Utilization Rate) by how costly the direct salary is relative to revenue (Direct Salary Expense Ratio). Convert 70% to 0.70, then multiply by 3.0: 0.70 × 3.0 = 2.1. So the Revenue Factor is 2.1.

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