Hi headspin, what is the actual question? You seem to lack some direction here.
Hi all, I'd be super grateful if anyone could help me out with this - I might be overcomplicating it in my head, but I'll go ahead anyway!
Organisation X states that it has spent £1,000,000 on 20 employees working 1,600 day in the last 13 months.
Now, as there aren't 1,600 days in 13 months, I want to get a slightly more accurate figure. However, without any other additional information, I can only work on averages until provided with something more accurate.
So, my calculation goes something like this:
1,600 days / 20 employees = 80 days worked each during the 13 month period
£1,000,000 spent / 20 employees = £50,000 paid to each employee
£50,000 paid to each / 80 days worked each = £625 a day paid to each
£625 a day paid to each x 20 employees = £12,500 cost per day
And then £12,500 x 80 days = £1,000,000 spent in total, back where we started.
So, am I justified in saying that the organisation has spent £12,500 a day on employing these 20 people?
Hi both, thanks for replying!
Pickslides - the actual question I suppose I'm getting at is whether my end result of £12,500 per day, based on the average assumption of earnings per employee over a particular period, is as valid as the workings out of simply dividing the 1,600 days by £1,000,000, which presents itself as £625 a day, which although being mathematically correct is not 'realistically correct' in such a context.
Archie - the working hours per day, just for examples' sake, would be 7.5 hours, although if the calculation doesn't reduce down that far, I'm not entirely sure if it would become relevant?
Lol - is this the kind of world that accountants live in???
Would that be more realistic?
Comes out about 8 months work out of the 13, plenty of holidays
and a figure of around £300 per individual
(whether that's wages and various overheads or just employees pay)....
What do you reckon ?