Q U E S T I O N S

Profits: $$4,200,000$

Revenue $($Fees$)$: $$12,500,000$

Leverage ratio: $5$ to $1$

Headcount $($staff$+$partners$)$: $60$

Staff billing rate: $$300$ per hour

$1.$ How many staff does the firm have?

$2.$ What is the firm's productivity?

$3.$ What is the firm$$s PPP $($profits per partner$)?$

$4.$ What is firm$$s utilization?

$5.$ Suppose the firm promotes $10$ associates $($staff$)$ to partner. How many new associates must it hire to maintain the same leverage ratio? What does this illustrate?