Question

Sunland Company recently performed repair services for a customer that totaled $300. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered: Total bill $530 Labor profit margin 10 Materials profit margin 20% Total labor charges $320 Cost of materials used $120 Total hourly cost $22.5 What was the material loading charge?

Answer 1

Material handling charges = $34

Step-by-step explanation:

Provided information,

We have the following details,

Since not provided, assumed profit margin is exclusive of the charges of material and labor provided.

Total labor charge = $320

Profit margin on labor = 10%

= $320
`*` 10% = $32

Material used = $120

Profit margin = 20%

Profit margin on materials = $120
`*` 20% = $24

Total including profit = $320 + $32 + $120 + $24 = $496

Total bill = $530

Less: Total of above cost components $496

Material handling charges = $34