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Hi Sir,Kindly help me on the below question… couldn’t solve it..
An accountant sets up in private practice.She anticipates working a 35-hour week and taking four weeks holiday per year.General expenses of the practice are expected to be $20,000 per year, and she has set herself a target salary of $30,000 a year.
Assuming that only 75% of her time is chargeable to clients, what should she quote (to the nearest $) for a job anticipated to take 50 hours?Thank You….
The total expenses are 20000 + 30000 = 50,000.
The total hours to be worked are 48 x 35 = 1680
However only 75% of these hours will be chargeable, so the chargeable hours are 75% x 1680 = 1260So she needs to charge 50000/1260 = $39.68 per hour for work done.
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