Use the Following Information for Questions
the Following Data

question 6

Multiple Choice

Use the following information for questions
The following data are available for Wheels 'N Spokes Repair Shop for 2020:
$$\begin{array} { l l } \text { Repair technician's wages } & \$ 150,000 \\\text { Fringe benefits } & 50,000 \\\text { Overhead } & \underline { 80,000 } \\\text { Total } & \underline { \$ 280,000}\end{array}$$ 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 2020.
-Wheels 'N Spokes' labour charge in 2020 would be

• A)$50.
• B)$65.
• C)$70.
• D)$85.

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Definitions:

Consumer Income

The total earnings of consumers, encompassing wages, dividends, and other sources of income, which determine their purchasing power.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Price of Belts

This refers specifically to the market value or cost at which belts are sold or purchased.

Demand

The desire and ability of consumers to purchase goods or services at a given price.