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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Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9780470016091
2nd Edition
Authors: Paul M. Collier
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