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cost- managerial accounting consultant for a variety of firms of her marketing a

ID: 342081 • Letter: C

Question

cost- managerial accounting consultant for a variety of firms of her marketing and other overhead To determine her hourly rate, Amy uses Amy Andrews i plus pricing system, which she updates each sCRA who works as year The hourly cost of her ossistant (including taxes and benefits) is $18, the hourly cost of her materials is S6, and Amys own hourly salary (again, including taxes and benefits) s S62 Amy adds a 20% premium to her costs. What is her hourly rate using a cost plus pricing strategy? O s90 S110 O $96

Explanation / Answer

Hourly rate using cost plus pricing strategy=(18+4+6+62)*1.2= $108 Option 2 is correct