ssignmentMain.do?invoker-assignments&tak; ocator assignment-take8inprogress fals

Question

ssignmentMain.do?invoker-assignments&tak; ocator assignment-take8inprogress false eBook Calculator Video Calculating Price by Applying a Markup Percentage to Cost The 1. Escobar Law Firm provides various legal services to organizations. J. Escobar has decided to price its jobs at the total variable costs of the job plus 14.5 percent. The job for a medium-sized dance dub dient included the following costs: Direct materials Direct labor (partners and staff accountants) Depreciation (using straight-line method) on 5,000 90,000 Integrity's office building Required: Calculate the price charged by The J. Escobar Law Firm to the dance dub. If required, round to the nearest dollar. 50,000 5 6

Explanation / Answer

Answer is $ 108,775 is charged for job.

The explanation is as follows:

Total Variable cost of the Job:

Direct material:                $ 5,000

Direct Labour:                  $ 90,000

Total variable cost:           $ 95,000

Add: mark-up @14.5%     $ 13,775 (95,000*14.5%)

Total Price to be charged $ 108,775

Note: Depreciation of building is a fixed cost charged hence not included in the variable cost.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.