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The following data is available for Wheels ‘N Spokes Repair Shop for 2016:The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2016.
-In January 2016, Wheels 'N Spokes repairs a bicycle that uses parts of $180.Its material loading charge on this repair would be
A)$72.
B)$108.
C)$180.
D)$252.

Question

Use the following information for questions 
The following data is available for Wheels ‘N Spokes Repair Shop for 2016:The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2016.
-In January 2016, Wheels 'N Spokes repairs a bicycle that uses parts of $180.Its material loading charge on this repair would be
A)$72. 
B)$108. 
C)$180. 
D)$252.

Quizplus · Accepted Answer

Material loading charge is 40% of the cost of parts.40% of $180 = $72

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