Homework Answers
| Part a | ||||
| Office and computer expenses per consulting hour | ($625,000 / 20,000) | 31.25 | ||
| Variable cost per consulting hour | 30.00 | |||
| Desired profit per consulting hour | ($100,000 / 20,000) | 5.00 | ||
| Charge per hour | 66.25 | |||
| Part b | ||||
| Variable cost per consulting hour | 30.00 | (a) | ||
| Desired profit per consulting hour | ($150,000 / 20,000) | 7.50 | (b) | |
| Office and computer expenses per consulting hour | ($625,000 / 20,000) | 31.25 | ( c) | |
| Total markup per consulting hour | 38.75 | (d) = (b)+( c) | ||
| Markup on variable cost | 129% | (d)/(a) | ||
| Part c | ||||
| (1) unassigned costs | (2) desired profit | |||
| Variable cost per consulting hour | (a) | 30.00 | 30.00 | |
| Desired profit per consulting hour (60000/20000) | (b) | - | 3.00 | |
| Office and computer expenses per consulting hour | (b) | 31.25 | - | |
| Markup on variable cost | (b)/(a) | 104% | 10% | |
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