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Florida Temps, a large labor contractor, supplies contract labor to building-construction companies. For 2013, Florida Temps has budgeted to supply 86,000 hours of contract labor.
Florida Temps, a large labor contractor, supplies contract labor to building-construction companies. For 2013, Florida Temps has budgeted to supply 86,000 hours of contract labor. Its variable costs are $15 per hour, and its fixed costs are $172,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 25% Read the requirements Requirement 1. Calculate the price per hour that Florida Temps should charge based on Mason's proposal. Begin by determining the formula to calculate the price per hour based on Mason's proposal, then calculate the price. (Complete all answer boxes. Round the price per hour to two decimal places.) -Price per hour i Requirements 1. Calculate the price per hour that Florida Temps should charge based on Mason's proposal 2. The marketing manager supplies the following information on demand levels at different prices: EEB (Click the icon to view the prices and demand levels.) Florida Temps can meet any of these demand levels. Fixed costs will remair unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Florida Temps should charge to maximize operating income. 3. Comment on your answers to requirements 1 and 2. Why are the answers the same or different? Print Done Demand (Hours) Price per Hour $ 18 126,000 105,000 86,000 72,000 61,000 20 23 24
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