Practice questions:
Jill Collis has decided to start a business as a garden designer. She wishes to pay herself a salary of £25 per hour and rents an office for £300 per month. Her other estimated monthly costs are as follows:
£
Telephone 140
Lighting 20
Advertising 80
Car 300
She anticipates that in a month she should be able to work for 80 hours and intends to quote for work at total cost plus 15% profit.
A potential client invites her to quote for a garden design and she calculates the cost of materials in terms of photographs, drawings, etc.will be £70.
What price should she quote if the job is likely to take 30 hours?