ours of technical work. Their company-wide labor rate is $70.00 per hour. Based on work the company has performed in recent years, their Labor Utilization Rate is 62.5% and their Break Even Multiplier is 2.1. The company wants to target a Profit of 30% for this project. I need to solve for direct labor cost, total labor cost, indirect cost, total cost, how much the company should ch
ours of technical work. Their company-wide labor rate is $70.00 per hour. Based on work the company has performed in recent years, their Labor Utilization Rate is 62.5% and their Break Even Multiplier is 2.1. The company wants to target a Profit of 30% for this project. I need to solve for direct labor cost, total labor cost, indirect cost, total cost, how much the company should ch
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A consulting engineering company is proposing a project that it estimates will require 210
hours of technical work. Their company-wide labor rate is $70.00 per hour. Based on work
the company has performed in recent years, their Labor Utilization Rate is 62.5% and their
Break Even Multiplier is 2.1. The company wants to target a Profit of 30% for this project. I need to solve for direct labor cost, total labor cost, indirect cost, total cost, how much the company should charge, effective labor multiplier and non-labor indirect costs
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