Amy Andrews is a CPA who works as a managerial accounting consultant for a variety of firms.To determine her hourly rate,Amy uses a cost-plus pricing system,which she updates each year.The hourly cost of her assistant (including taxes and benefits)is $18,the hourly cost of her office space is $4,the hourly cost of her marketing and other overhead materials is $6,and Amy's own hourly salary (again,including taxes and benefits)is $62.Amy adds a 20% premium to her costs.What is her hourly rate using a cost-plus pricing strategy?
A)$90
B)$96
C)$108
D)$110

Question

Quizplus · Accepted Answer

Amy's total hourly cost is the sum of her assistant's hourly cost ($18), office space hourly cost ($4), marketing and other overhead materials hourly cost ($6), and her own hourly salary ($62), which equals $90. Adding a 20% premium to her costs ($90 * 20% = $18) results in an hourly rate of $108 ($90 + $18).

Amy Andrews Is a CPA Who Works as a Managerial