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Temps, a large labor? contractor, supplies contract labor to? building-construction companies. For 2017?, North Dakota Temps has budgeted to supply 83,000 hours of contract labor. Its variable costs are $11 per? hour, and its fixed costs are $166,000. Roger? Mason, the general? manager, has proposed a? cost-plus approach for pricing labor at full cost plus 25?%.
Problem 1: Calculate the price per hour that North Dakota Temps should charge based on? Mason's proposal.
Problem 2: calculate the price per hour that North Dakota Temps should charge to maximize operating income.
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