Question

To make a profit, Ethan knows that his prime cost of producing a part must be no more than $189.27. It takes 2 hours for a machinist to make the part. The direct cost of materials is $98.62. To the nearest dollar, what can he afford to spend on direct labor costs per hour?

Answer 1

$45/h

Explanation:

So, we have a total maximum cost for the finished product and we have the raw material costs... but we need to figure out the maximum labor cost (for 2 hours).

We can express this as follows (remember it takes 2 hours of labor):

98.62 + 2x <= 189.27

2x <= 90.65

x <= 45.325

Rounded to the nearest dollar: $45

The maximum cost Ethan can afford in labor is $45/h for the 2 hours machining of the parts.