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The following data are available for Wheels 'N Spokes Repair Shop for 2012: The desired profit margin is $15 per labour hour.The material loading charge is 35% of invoice cost.It is estimated that 4,000 labour hours will be worked in 2012.
-In January 2012, Wheels 'N Spokes repairs a bicycle that uses parts of $200.Its material loading charge on this repair would be
A)$35.
B)$70.
C)$235.
D)$270.

Question

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The following data are available for Wheels 'N Spokes Repair Shop for 2012:  The desired profit margin is $15 per labour hour.The material loading charge is 35% of invoice cost.It is estimated that 4,000 labour hours will be worked in 2012.
-In January 2012, Wheels 'N Spokes repairs a bicycle that uses parts of $200.Its material loading charge on this repair would be
A)$35. 
B)$70. 
C)$235. 
D)$270.

Quizplus · Accepted Answer

The material loading charge is 35% of the invoice cost, which in this case is the cost of the parts used. So, the material loading charge would be 35% of $200, which is $70.

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