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CD8 Creative Designs As a service to its customers, Creative Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant

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CD8 Creative Designs As a service to its customers, Creative Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, Creative Designs uses time-and-material pricing with a desired profit margin of $20 per labor hour and a 50% materials loading charge. Recently, Bill Johnson, Vice President of Sales and Marketing, received a phone call from a dealer in Brainerd, Minnesota. The dealer has a customer who recently damaged his composite kayak and would like an estimate of the cost to repair it. After the dealer emailed pictures of the damage, Bill reviewed the pictures with the repair technician and determined that the total materials charges for the repair would be $100. Bill estimates that the job will take 3 labor hours to complete. Following is the budgeted cost data for Creative Designs: Repair technician wages $30,000 Fringe benefits Overhead $10,000 $10,000 Creative Designs has allocated 2,000 hours of repair time for the upcoming year. The customer has agreed to transport the kayak to the Winona production facility for the repairs. Instructions Determine the price that Creative Designs would charge to complete the repairs for the customer. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells MacBook Pro

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