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Nevada Temps, a large labor contractor, supplies contract labor to building-construction companies For 2017, Nevada Temps has budgeted to supply 85,000 hours of contract
Nevada Temps, a large labor contractor, supplies contract labor to building-construction companies For 2017, Nevada Temps has budgeted to supply 85,000 hours of contract labor. Its variable costs are $11 per hour, and its fixed costs are $255,000. 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 Nevada 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. (Completo all answer boxes Round the price per hour so two decimal places) Price per hour Clear all Check answer tor, supplies contract labor to building-construction companies. For 2017, Nevada Temps has budgeted to supply 85 $255,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 2 per hour calculate ges Requirements 1. Calculate the price per hour that Nevada Temps should charge based on Mason's proposal. 2. The marketing manager supplies the following information on demand levels at different prices: Price per Demand Hour (Hours) 15 122,000 16 109,000 17 85,000 18 71,000 19 60,000 Nevada Temps can meet any of these demand levels. Fixed costs will remain unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Nevada Temps should charge to maximize annesting income - X und Requirements ur 2. me manneng manager supplies the following information on demand revers at different prices: ate Price per Demand Hour (Hours) 69 15 122,000 16 109,000 17 85,000 18 71,000 19 60,000 G Nevada Temps can meet any of these demand levels. Fixed costs will remain unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Nevada Temps should charge to maximize operating income. 3. Comment on your answers to requirements 1 and 2. Why are they the same or different? -
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