Customers were billed for $20,000$ hours of repair work last year.

The company has a target profit of $$10$ per hour of repair service time and a target profit of $40\%$ of the invoice cost of parts used.

During the past year, the company billed repair service time at $$50$ per hour and added a materials loading charge of $40\%$ to parts.

Management feels these rates may now be inadequate, since costs have risen somewhat over the last year.

Required:

Using the above data, compute the following:

a$.$ The rate that would be charged per hour of repair service time using time and materials pricing. b$.$ The materials loading charge that would be used in billing jobs. The materials loading charge should be expressed as a percentage

of the invoice cost.

Assume that the company adopts the rates that you have computed in $(1)$ above. What should be the total price charged on a repair

job that requires six hours of service time and parts with an invoice cost of $$500?$

Total price of the job