Gross profit higher than expected

Discussion in 'Growing and Managing a Business' started by AmandaC, May 13, 2011.

  1. AmandaC

    AmandaC
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    The time goal hours for all the projects for the entire year were

    created using a rate of $70 hour. With this hourly rate the estimated

    gross profit is 35%. Actual hours exceeded budgeted hours by 3,000

    hours, but the actual gross profit ended up being 45%. What could

    have caused actual gross profit to exceed estimated gross profit in this scenario?

    -Thanks!
     

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