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%

Question

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Respuesta :

DeniceSandidge DeniceSandidge · Answer 1 · 2019-11-05T11:13:55+01:00

Answer:

material loading charge = 25%

so correct option is B) 25%

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 = [tex]\frac{20}{80}[/tex] × 100

material loading charge = 25%

so correct option is B) 25%