A company is pricing a job that involves the use of 25 hours of skilled labour and 50 hours of unskilled labour within the next week. The existing 2 skilled workers are employed for 40h/week and they are paid a minimum weekly wage of 800 corresponding to 20 per hour. Each worker is currently working only 32 hours a week. If workers work more than 40h/week, an overtime premium of 15/h has to be paid in addition to the regular hourly rate. There is no alternative option to hire additional skilled workers from outside. (Hint: start with calculating next week's spare capacity of the TWO skilled workers.)

The 10 unskilled workers are currently all fully utilised. 50 hours are required for this special contract. They are each paid 8/h. For overtime they are paid 150% of their basic wage. Alternatively, additional contract workers could be hired for 14 per hour.

Calculate the short-term relevant labour cost for this job!

a) The short-term relevant cost of skilled labour (25h required) is Answer

b) The short-term relevant cost of unskilled labour (50h required) is Answer

c) The short-term relevant cost of labour (= skilled & unskilled labour) for this special contract is Answer

Insert the numbers without using a -sign or a comma to separate groups of thousands.