General ACCAthe superior business consult

Question 15 of kaplan revison kit..how the cost per consultation is calculated ? Calculation of the cost per consultation is as follows: Advertising Recruitment IT Support Number of consultants 20 30 50 Salary ($) 40,000 35,000 30,000 Total salaries 800,000 1,050,000 1,500,000 Number of consultations per annum (200 per consultant) 4,000 6,000 10,000 Business Development Activity (280 ) (1,320 ) (1,200 ) –––––––– ––––––––– ––––––––– Chargeable days 3,720 4,680 8,800 Demand for chargeable consultations 4,200 6,250 10,250 –––––––– ––––––––– ––––––––– Subcontractor days 480 1,570 1,450 Cost per subcontractor day ($) 300 220 200 –––––––– ––––––––– ––––––––– Cost of subcontractors ($) 144,000 345,400 290,000 –––––––– ––––––––– ––––––––– Cost per chargeable consultation ($) Full-time consultants Total salaries plus operating costs/chargeable days 277·55 286·86 232·95 Subcontractors = Cost of subcontractors/ number of subcontractors 335·71 255·71 235·71