Sophie operates a small dog minding business from home and uses a basic costing system to charge customers on a per hour basis. She has given you the following information:
- Anticipated working week will be a 35-hour week, taking four weeks' holidays per year
- 90% of working time will be chargeable to clients
- Direct costs & total overheads combined are expected to be £3,000 per year
- Target profit for the year is £18,000
Based on the information above for year one, which of the following would you advise Annie to charge for a 'morning only' dog mind service that takes 3 hours.
£13.89
£37.50
£41.67
£35.71