Question

The desired profit margin is $25 per labor hour. The material loading charge is 25% of invoice cost. It is estimated that 5000 labor hours will be worked in 2019. In January 2019, Mike repairs a cellphone that uses parts of $200. Its material loading charge on this repair would be Select one: a. $20 b. $72 c. $50 d. $200

Answer 1

c. $50

Step-by-step explanation:

The computation of the material loading charge is shown below:

= Repair cost of a cellphone parts × material loading charge percentage

= $200 × 25%

= $50

By multiplying the repair cost of a cellphone parts with the material loading charge percentage so that the material loading charge on this repair could come