Road Runners is a bike sales and service shop. The service division uses a time and material billing policy. Based on the following costs and desired profits, calculate the hourly rate for labour and the material loading charge for Road Runners assuming that the service technicians work 2,960 hours per year and invoice costs total $64,000 per year. Round to two decimal places.

Labour....................................Materials

Technicians’ salaries             $74,000

Office supplies                        $ 3,000                                      $ 8,000

Parts                                                                                        $24,000

Overhead on equipment         $ 5,000

Advertising costs                    $ 3,000

Desired profit                          $ 7 per hour 15%

Hourly labour rate.................Materials loading charge

a.         $28.72....................................15%

b.         $28.72.....................................50%

c.         $35.72.....................................65%

d.         $35.72.....................................50%