Armstrong Bike Repair Shop has budgeted the following time and material for $2020.$

Armstrong budgets $2,500$ hours of repair time in $2020$ and will bill a profit of $$5\mathrm{.}00$ per labor

hour along with a $15\%$ profit markup on the invoice cost of parts. The estimated invoice cost for

parts to be used is $$75,000.$

On January $5,2020,$ Armstrong is asked to submit a price estimate to fix a Superior Mountain

bike. Armstrong estimates that this job will consume $4$ hours of labor and $$200$ in parts.

Instructions

$($a$)$ Compute the labor rate for Armstrong Bike Repair Shop for the year $2020.$

$($b$)$ Compute the material loading charge percentage for Armstrong Bike Repair Shop for the

year $2020.$

$($c$)$ Prepare a time$-$and$-$material price quotation for fixing the Superior Mountain bike.