St-Cyr's budgets 5,000 hours of repair time in 2016 and will bill a profit of $5 per labour hour along with a 30% profit markup on the invoice cost of parts.
On January 5, 2016, St-Cyr's is asked to submit a price estimate to fix a 72-inch big-screen TV. St-Cyr's estimates that this job will consume 20 hours of labour and $500 in parts and materials.
(a) Calculate the labour rate for St-Cyr's Electronic Repair Shop for the year 2016.
(b) Calculate the material loading-charge percentage for St-Cyr's Electronic Repair Shop for the year 2016.
(c) Prepare a time-and-material price quotation for fixing the big-screen TV.