ARE 5.0 Practice Management Formulas questions and answers well illustrated. Utilization rate - correct answers.Direct labor hours / total labor hours = % Overhead rate - correct answers.Total indirect expenses / total direct labor = $ Break -even rate - correct answers.Overhead rate + 1.0 = $ Net multiplier - correct answers.Net operating revenue / total direct labor = $ Profit -to-earnings ratio - correct answers.Net profit / net operating revenue = % Net revenue per employee - correc t answers.Annual net operating revenue / total number of employees = $ Aged accounts receivable - correct answers.Average annual accounts receivable / (net operating revenue / 365) = calendar days before payment is received Solvency - correct answers.Tot al current assets / total current liabilities Liquidity - correct answers.(Cash + accounts receivable + revenue earned, not billed) / total current liabilities Leverage - correct answers.Total liabilities / total equity + % Return on equity - correct an swers.(Total net operating revenue - total expenses) / total equity = % Net profit multiplier - correct answers.Break even rate (20%) - break even rate Targeted net multiplier - correct answers.Break even rate + net profit multiplier Hourly billing rate - correct answers.Hourly salary (net targeted net multiplier)
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