Final answer:
To calculate the total cost to the customer with a 125% markup on labor, multiply the labor cost per hour by 2.5 hours to get the base cost, then calculate 125% of that as the markup and add the two together.
Step-by-step explanation:
The question asks how to calculate the total cost to a customer, including a markup of 125% on labor costs, assuming the labor hours are 2.5. First, we need to determine the base cost of labor without the markup.
Assuming a given labor cost per hour, we multiply that cost by the number of labor hours, which is 2.5, to find the base labor cost.
Then, we apply the markup by calculating 125% of the base labor cost and adding that to the initial cost to find the total cost to the customer.
For example, if the labor cost is $4 per hour:
- Base Cost of Labor = Labor Cost per Hour × Number of Hours
(Base Cost of Labor = $4/hour × 2.5 hours = $10) - Markup = Markup Percentage × Base Cost of Labor
(Markup = 125% × $10 = $12.50) - Total Cost to Customer = Base Cost of Labor + Markup
(Total Cost to Customer = $10 + $12.50 = $22.50)
This calculation yields the total cost to the customer, including the markup on labor.