Which of the following is NOT a step in calculating an agency’s cost to deliver?
- Determine the average salary of your client-facing staff.
- Turn the average salary into an hourly rate.
- Divide the hourly rate by your profit margin.
- Adjust your hourly cost by layering in your team’s utilization rate.
- Account for overhead costs.
The correct answer is:
- Divide the hourly rate by your profit margin.
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