In the video on Objective 2.1: Evaluate the Financial Well-Being of the Practice
Firm Financials: Profit Plan + Annual Budget…
[ screenshot removed ]
here they define Net Multipler as Break Even Rate + Profit Multiplier. What? I had it defined as Net Multipler = NOR/Direct Labor.
What is different Here?
@annarbrodersen Great question! The Net Multiplier can be found using either of these formulas that you mention, which is helpful if you’re given limited information in a question.
Also just a heads up, I’ve removed the screenshot from your post as we do not allow our paid content to be shared.
Happy studying!
Kiara Galicinao, AIA, NCARB
Product Coordinator
Black Spectacles