Mental Math & Quick Calculations · Interview Question
A company has $320M in revenue and 8,000 employees. What is the revenue per employee?
How to answer
Revenue per employee = $320M / 8,000. Simplify: $320M / 8K = $320,000,000 / 8,000 = $40,000. Shortcut: $320M / 8K → drop three zeros from both → $320K / 8 = $40K. So each employee generates $40,000 in revenue. This metric varies widely by industry: consulting firms might see $200K+/employee, while retail is $150-250K/employee. A low figure may indicate overstaffing or low-value services.
Key idea: Cancel common zeros from numerator and denominator.
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