Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information: What should Shale set as the materials markup per dollar of materials used?
A) 25%.
B) 45%.
C) 40%.
D) 20%.
E) 50%.

Question

Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information:  What should Shale set as the materials markup per dollar of materials used?
A) 25%. 
B) 45%. 
C) 40%. 
D) 20%. 
E) 50%.

Quizplus · Accepted Answer

Markup = Materials overhead % + Profit margin %: 20% + 25% = 45%
Materials purchasing, handling, and storage ($241,250 / $1,206,250) = 20%

Shale Remodeling Uses Time and Materials Pricing