Jane Maxwell is a financial planner at Trifle Consulting. Jane's annual salary (including on-costs) is $100 000. It is estimated she works 37 hours a week and 45 weeks per year (the other weeks relate to annual leave and public holidays). She also spends 100 hours a year on non-client related work, including administrative duties (30 hours), attending training (60 hours) and idle time (10 hours). To cover both overhead costs and profit, Trifle Consulting requires a margin of 30 per cent of labour cost when calculating billable rate. What is Jane's chargeout rate per billable hour (rounded to nearest dollar)?
A) $83
B) $78
C) $64
D) $60

Question

Quizplus · Accepted Answer

To calculate Jane's chargeout rate per billable hour, first determine her total billable hours: 37 hours/week * 45 weeks/year = 1665 hours/year. Subtract non-client related work (100 hours), leaving 1565 billable hours. Her salary is $100,000, so her hourly cost is $100,000 / 1565 hours = $63.91. Adding a 30% margin: $63.91 * 1.30 = $83.08, rounded to $83.

Jane Maxwell Is a Financial Planner at Trifle Consulting