Jane Maxwell is a financial planner at Trifle Consulting. Her estimated salary cost per billable hour is $100. The estimated overhead cost per professional labour dollar for Trifle Consulting is 20 per cent and the required profit margin is 40 per cent of cost. What is Jane's chargeout rate per billable hour?

Question

Quizplus · Accepted Answer

Firstly, we need to calculate the total cost per billable hour for Jane Maxwell. 
Total Cost = Salary Cost + Overhead Cost 
Salary Cost = $100 
Overhead Cost = 20% of Salary Cost = 0.2 * $100 = $20 
Total Cost = $100 + $20 = $120

Next, we need to add the required profit margin of 40% to the total cost. 
Profit Margin = 40% of Total Cost = 0.4 * $120 = $48

Chargeout Rate = Total Cost + Profit Margin = $120 + $48 = $168

Therefore, Jane's chargeout rate per billable hour is $168.

Jane Maxwell Is a Financial Planner at Trifle Consulting