=+9-24 KK Cost-plus and market-based pricing OBJECTIVES 2, 3 Immediate Solutions, a large labour contractor, supplies contract labour to building construction companies. For 2015, Immediate Solutions has budgeted to supply 84000 hours of contract labour. Its variable costs are $13 per hour and its fixed costs are

$168000. Sam Hurst, the general manager, has proposed a cost-plus approach for pricing labour at full cost plus 20%.

Required 1 Calculate the price per hour that Immediate Solutions should charge based on Sam Hurst’s proposal.