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What one consultant earns for the firm, and what 10 points of utilization cost
The prompt
Harbourline Advisory (a fictional firm in Singapore) has a consultant available for 1,800 hours a year, billed at a standard rate of USD 250 an hour. The firm collects 90 percent of its standard fees (realization). The consultant costs USD 150,000 a year in pay and benefits. What is the yearly contribution at 70 percent utilization, and what happens if utilization falls to 60 percent?
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