Grant & McKenzie is a firm of financial advisers that needs to calculate an hourly rate to charge customers for its services.
The average salary cost for its advisers is $50,000. The employer’s share of CPP and EI is paid to the government as 4.95% and 2.52%, respectively. Each adviser has a four-week annual holiday and there are 10 days per year when the firm closes for holidays. Each adviser is expected to do 25 chargeable hours of work per week for clients; the remainder of the 40-hour week is spent on administrative work.
What hourly rate (to the nearest hour) would cover the cost of each financial adviser?
- $46.72
- $29.20
- $43.78
- $41.33
Local Bank does not know how much of its salaries related to cheque processing are fixed and how much are variable. However, total costs have been estimated at $750,000 for processing of 1,000,000 transactions and $850,000 for processing of 1,200,000 transactions.