Alan’s Car Care Centre specializes in providing car tune-ups, brake jobs, and tire replacements for most vehicle makes and models. Alan’s charges customers for materials “at cost” but charges labour at a rate of $87 per hour. The labour rate is high enough to cover actual mechanic wages ($29 per hour) and shop overhead (allocated at a cost of $18 per hour), and to provide a profit. Giles recently had a 72,000-km service performed on his car. Materials used on the job included $15.50 for oil and filter, $65.45 for transmission fluid exchange, $21.35 for the air filter, and $32.78 for the cabin filter. The mechanic spent 1.75 hours on the job.
Requirements
1. How much was charged to the customer for this work?
2. What was Alan’s cost for this job?
3. How much profit did Alan’s earn on this job?