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Sagot :
a. The determination of the profit margin per hour on labor is $510,048 ($68.10 x 12,600 - $348,012).
b. The determination of the profit margin on materials is $242,359.94 ($510,048 x 83.2% - $182,000).
c. The determination of the total price of labor and materials on a job completed after the fire requiring 150 hours of labor and $62,000 in parts and materials is as follows:
Labor Materials
Hours required 150 hrs. $62,000
Total price $10,215 ($68.10 x 150) $51,584 ($62,000 x 83.20%)
What is the profit margin?
Profit margin is computed as the revenue minus the expenses.
For trading organizations, the profit margin is the difference between the sales revenue and the operating expenses.
Data and Calculations:
Estimated total labor hours = 12,600
Expected parts and materials costs = $1,300,000
Time Charges Material Loading
Charges
Restorer's wages and fringe benefits $281,736 -
Purchasing agent's salary and fringe benefits - $81,000
Administrative salaries and fringe benefits 50,526 21,180
Other overhead costs 15,750 79,820
Total budgeted costs $348,012 $182,000
Hourly labor rate = $68.10
Material loading charge = 83.20%
Learn more about profit margins at https://brainly.com/question/1231184
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