>RSA in NSW has staff on $17 an hour, but they need to charge $105 an hour to
>cover
>overheads. This is why they can not compete against private companies for
>track
>maintenance contracts.
This is a classic of accountancy gone haywire. In my experience a usual
claculation for overheads on a given activity is the full cost of the item plus
40%.
That would make your example $17/hour plus employer's social (pension, medical,
insurance) costs - let's imagine this is 25%, tho in Australia I doubt it,
bringing the total to $22/hour, plus 40% making a defensible hourly cost of
around $33/hour.
It's clear that ther administration that charges $105 is
(a) trying to discourage this business
(b) charging all kinds of capital and revenue costs to the 'black hole' of
overheads tp make the proposistion unacceptable.
It' the same nonsense that has the enagon paying $1500 for a toilet seat, and
gets used by hosptials that charge $50 for a bandaid.
In other words, it's a nonsense, ought to be contested and exposed, and the
people that engage it in taken out and shot.
*Philip*
(wondering what the real sub-text here might be)