If a contractor charges the blended labor burden rate you calculated from Exercise 1.A to a client but applies it to both direct and indirect labor, how would this affect their profit?

Data from Exercise 1.A

Assuming five craftsmen for each of the crafts in Table 10.2,

Table 10.2

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Construction Craft Carpenters Cement Masons Electricians Base Labor Labor Total Loaded Wage Taxes Benefits Burden Wage $41 $8 $13 $21 $62 $34 $6 $11 $17 $51 $23 $22 $31 $19 Ironworkers Laborers $45 $9 $10 Equipment Operators $40 $14 $12 $43 $12 $19 $35 $8 $11 Construction Craft Plumbers and Pipefitters $48 $11 $68 $62 $74 $54 Base Labor Labor Total Loaded Wage Taxes Benefits Burden Wage $17 $28 $76