Question

Swifty Corporation recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered:Total bill $400

Labor profit margin $10
Materials profit margin 20%
Total labor charges $260
Cost of materials used $100
Total hourly cost $22.50

What was the material loading charge?
A) 20%
B) 25%
C) 35%
D) 40%

Answer 1

The material loading charge is 35%.

Step-by-step explanation:

Total Bill

The total bill for the repair services is $400.

Labor Charges

The total labor charges are $260.

Cost of Materials Used

The cost of materials used is $100.

Labor Profit Margin

The labor profit margin is $10.

Materials Profit Margin

The materials profit margin is 20%.

Material Loading Charge

To find the material loading charge, we need to calculate the total material cost.

The total material cost can be calculated by subtracting the materials profit margin from the cost of materials used.

This gives us $100 - 20%($100) = $100 - $20 = $80.

The material loading charge is the difference between the total material cost and the cost of materials used. This gives us $80 - $100 = -$20.

Since the material loading charge cannot be negative, the correct answer is C) 35%.

Answer 2

material loading charge = 25%

so correct option is B) 25%

Step-by-step explanation:

given data

Labor profit margin = $10

Materials profit margin = 20%

Total labor charges = $260

Cost of materials used = $100

Total hourly cost = $22.50

to find out

material loading charge

solution

we know that Cost of materials and Materials profit margin

so material cost will be here

material cost = Cost of materials used - Materials profit margin

material cost = $100 - 20% × $100

material cost = $100 - $20 = $80

so

material loading charge will be

material loading charge =
`(20)/(80)` × 100

material loading charge = 25%

so correct option is B) 25%