Watkins Company Uses Time and Material Pricing

question 51

Multiple Choice

Watkins Company uses time and material pricing.The time rate is $25 per hour.The material loading charge is 30% for ordering,handling,and storing parts and 10% for the desired profit on materials.Given these data,what would be the total charge for a job that requires 8 hours of labour time and $150 in parts?

• A) $260.
• B) $410.
• C) $430.
• D) $490.

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Definitions:

Elasticities

Measures in economics that indicate how changes in one variable, such as price or income, affect a change in another variable, such as demand or supply.

Demand Curves

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

Supply Curves

Diagrams indicating how the quantity of a product offered by sellers varies with price, illustrating market supply dynamics.

Cigarettes

Narrow cylinders containing psychoactive material, typically tobacco, that are rolled into thin paper for smoking.