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Question : Formula to give billing rate
I am trying to figure out a multiplier or billing rate, and am not certain how to do it.
In Excel I have column C (Operation to perform), Column D Setup Minutes (Time to setup machine in minutes for the operation).
Column E is Setup Rate.(Cost per hour for labor to set machine up for the operation) Column F is Minutes per operation ( time to perform operation in minutes) and Column G is Labor rate (Cost of performing operation in hours.)
There may be up to 20 operations to complete 1 part.
I am trying to come up with the formula that would take this information and give me a multiplier that can have other costs added to it for quoting.
Currently we use a fixed hourly rate of $60.00. The problem is that seup should be charged out at a lesser amount than running the machine and also some machines need to be billed at higher or lesser rates depending on the machine.
I need to be able to give good competitive quotes and know that I am not giving to low of a price.
Any help would be greatly appreaciated
Answer : Formula to give billing rate
See the attached file for the solution. Hope this helps. Please reply for any query.
Hour-Rate.xls
(28 KB)
(File Type Details)
Hourly Rate Calculations
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