Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 68 per hour Annual labor hours 3.100 hours Annual materials purchases $ 834,000 Materials purchasing, handling, and storage $ 50, 040 Overhead for depreciation, taxes, insurance, etc. $ 68, 200 Target profit margin for both labor and materials 20 % What should Yelk set as the materials markup per dollar of materials used? Multiple Choice 26 %. 6%. 20% 38% . 32%.

Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 68 per hour Annual labor hours 3.100 hours Annual materials purchases $ 834,000 Materials purchasing, handling, and storage $ 50, 040 Overhead for depreciation, taxes, insurance, etc. $ 68, 200 Target profit margin for both labor and materials 20 % What should Yelk set as the materials markup per dollar of materials used? Multiple Choice 26 %. 6%. 20% 38% . 32%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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