The formula to calculate the Hourly Billing Rate is:
\[ \text{Billing Rate} = \left( \frac{\text{Annual Salary}}{\text{Capacity}} \right) \times \text{Multiplier} \]
The billing rate is the amount charged per hour of service. It is calculated by dividing the annual salary by the total number of hours worked in a year (capacity) and then multiplying by a multiplier to cover overheads and profit margin.
Let's assume the following:
Step 1: Calculate Billing Rate:
\[ \text{Billing Rate} = \left( \frac{\$90,000}{2,080} \right) \times 4 = \$173.08 \text{ per hour} \]
Therefore, the Billing Rate is $173.08 per hour.
