material loading rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following data are available for ABC Repair Shop purchasing and materials management for 2016:
Purchasing manager wages $ 150,000
Budgeted Material purchases $400,000
The desired profit margin is $10 per labour hour. It is estimated that 4,000 labour hours will be worked in 2016. The company wants to make a 12% profit on material purchases. Calculate the material loading rate.
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