Rab consulting

Hi John,

I’m not able to follow why in this next example the administration expenses are not included to get the contribution per project

RAB Consulting Ltd specialises in two types of consultancy project:

Each type-A project requires 20 hours’ work from qualified researchers and eight
hours’ work from junior researchers.

Each type-B project requires 12 hours’ work from qualified researchers and
15 hours’ work from junior researchers.
Other data relating to the projects:
a b
Revenue per project 1,700 1,500
Direct project expenses 408 310
Administration 280 270

Administration costs are attributed to projects using a rate per projct hour. total administration are 28k per 4 week period

The contribution earned from each type-A project provided is £580. From each
type-B project it is £620.
During the four-week period ending on 30 June 2000, owing to holidays and other
staffing difficulties, the number of working hours available are:

qualified researchers: 1,344

junior researchers: 1,120
An agreement has already been made with XYZ Group to undertake 20 type-A
projects. RAB Consulting Ltd must start and complete these projects in the four-week
period ending on 30 June 200

Thanks for the help!