Presented below are data for an electrical repair shop for next year. Time charge Material loading charge Wages $250,000 140,000 Fringe benefits 100,000 60,000 Overhead 50,000 100,000 The rate charge per hour of labor is $70. The material loading charge is 40% of invoice cost of parts and materials. The shop estimates that 10,000 labor hours will be worked next year and the invoice cost of expected parts and materials was 2,000,000. 1. Calculate the desired profit margin per hour of labor. 2. If the shop repairs a TV that takes 2.5 hours to repair and uses parts of $200, compute the bill for this job

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Presented below are data for an electrical repair shop for next year.
Time charge
Material loading charge
Wages
140,000
Fringe benefits
60,000
Overhead
100,000
The rate charge per hour of labor is $70. The material loading charge is 40% of invoice cost of
parts and materials. The shop estimates that 10,000 labor hours will be worked next year and
the invoice cost of expected parts and materials was 2,000,000.
$250,000
100,000
50,000
1. Calculate the desired profit margin per hour of labor
2. If the shop repairs a TV that takes 2.5 hours to repair and uses parts of $200,
compute the bill for this job -
Transcribed Image Text:Presented below are data for an electrical repair shop for next year. Time charge Material loading charge Wages 140,000 Fringe benefits 60,000 Overhead 100,000 The rate charge per hour of labor is $70. The material loading charge is 40% of invoice cost of parts and materials. The shop estimates that 10,000 labor hours will be worked next year and the invoice cost of expected parts and materials was 2,000,000. $250,000 100,000 50,000 1. Calculate the desired profit margin per hour of labor 2. If the shop repairs a TV that takes 2.5 hours to repair and uses parts of $200, compute the bill for this job -
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