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ABC Accident Repair Limited carries out a large number of repairs for accident cars. For next year it plans 2,500 repairs based on the following

ABC Accident Repair Limited carries out a large number of repairs for accident cars. For next year it plans 2,500 repairs based on the following costs: Annual costs for 2,500 repairs Direct labour (200 per repair) 500,000 Direct materials (100 per repair) 250,000 750,000 Fixed overheads 250,000 Total cost 1,000,000 The company is reviewing its pricing policy for car repairs and is considering cost-plus pricing based on a 20% mark up on full (absorption) cost You are required to calculate the price per repair using cost-plus pricing.

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