Question
4. Assume you are a contractor and you've been hired to build a house. Your direct labor costs are $57,000. Your materials will cost $83,500.
4. Assume you are a contractor and you've been hired to build a house. Your direct labor costs are $57,000. Your materials will cost $83,500. What do you think you should charge for the job? and Why?
5. Consider the information below as part of the cost's structure about any Company. This Company sells a car's component.The component's price is $12.80. The retail price is $65.50. It costs the company as follows: $3.85 to manufacture one car's component, $1.35 for shipping and handling, $1.70 to package it, and $0.89 of variable costs per component.
a. Calculate the contribution margin.
b. The monthly fixed costs of the Company is $35.500. How many components would the company need to sell in order to break even?
c. What would be the markup percentage for the following:
Manufacturer ---- Retailer
Retailer --- Consumer
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