Question
Calculate the price for the following service job: Direct materials used to complete the job $1,300 Mark-up on materials to cover overheads 20% Direct Labour
- Calculate the price for the following service job:
| Direct materials used to complete the job | $1,300 |
| Mark-up on materials to cover overheads | 20% |
| Direct Labour | $1,250 |
| Overhead mark-up rate on labour costs | 40% |
- Market research has indicated that the price of a product should be $3,000. The entity wants to earn a profit of 20% of the target cost of the product.
Task
Calculate the target cost.
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
