13. Altons Auto Repair pays mechanics one-half the labor bill charges for the repair work they perform,
Question:
13. Alton’s Auto Repair pays mechanics one-half the labor bill charges for the repair work they perform, or $8 per hour, whichever is higher. Repair work is billed at $24 per hour for each standard hour as stated in a reference catalog. A skilled mechanic can perform 48 standard hours of work in a 40-hour week. Mechanics at this shop are not paid a percentage of the price for parts they install. Barton’s Auto Repair charges $22 per standard hour and pays mechanics $10 per hour plus 10 percent of the price for parts used on the repair work they perform. Each of Barton’s mechanics installs an average of $2,400 worth of parts in a week.
a. What are the average earnings at each shop?
b. Where would you prefer to have your automobile repaired and why?
Step by Step Answer:
Operations Management Providing Value In Goods And Services
ISBN: 9780030262074
3rd Edition
Authors: Dilworth, James B