Godfrey Consultancy adopts a cost-plus pricing system for its services and applies a target rate of return

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Godfrey Consultancy adopts a cost-plus pricing system for its services and applies a target rate of return of 25% on an investment of £750,000. Its labour costs are £25 per hour and other variable costs are £4 per hour. The consultancy anticipates charging 20,000 hours per year to clients and has fixed overheads of £250,000. Calculate Godfrey’s target selling price per hour.

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