Nebraska Temps, a large labour contractor, supplies contract labour to building-construction companies. For the year, Nebraska Temps has budgeted to supply 86,000 hours of contract labour. Its variable costs are $12 per hour, and its fixed costs are $344,000 Roger Mason, the general manager, has proposed a cost-plus approach for pricing labour at full cost plus 10%. Required Requirement 1. Calculate the price per hour that Nebraska Temps should charge based on Mason's proposal Begin by determining the formula to calculate the price per hour based on Mason's proposal, and then calculate the price (Complete all answer boxes, Round the price per hour to two decimal places) Price per hour Required 1. Calculate the price per hour that Nebraska 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) 17 127,000 19 106,000 20 86,000 21 78,000 23 69,000 Nebraska 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 Nebraska Temps should charge to maximize operating income.

Answer :

Other Questions