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and its fixed costs are $356,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 10%. Read
and its fixed costs are $356,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 10%. Read the requirements. Requirement 1. Calculate the price per hour that New York Temps should charge based on Mason's proposal. Requirements 1. Calculate the price per hour that New York Temps should charge based on Mason's proposal. 2. The marketing manager supplies the following information on demand levels at different prices: New York 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 New York 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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