Ohio Temps, a large labor contractor, supplies contract labor to building-construction companies. For 2017, Ohio Temps...

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Ohio Temps, a large labor contractor, supplies contract labor to building-construction companies. For 2017, Ohio Temps has budgeted to supply 80,000 hours of contract labor. Its variable costs are $10 per hour, and its fixed costs are $240,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 25%. Read the requirements. Requirement 1. Calculate the price per hour that Ohio Temps should charge based on Mason's proposal. Begin by determining the formula to calculate the price per hour based on Mason's proposal, then calculate the price. (Complete all answer boxes. Round the price per hour to two decimal places.) Full cost per hour 13 (100% + Markup percentage) = 25 % Price per hour 16.25 Requirements 1. Calculate the price per hour that Ohio Temps should charge based on Mason's proposal. 2. The marketing manager supplies the following information on demand levels at different prices: Price per Demand Hour (Hours) $ 14 129,000 15 108,000 16 80,000 17 72,000 18 67,000 Ohio Temps can meet any of these demand levels. Fixed costs will remain unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Ohio Temps should charge to maximize operating income. - x Ohio Temps, a large labor contractor, supplies contract labor to building-construction companies. For 2017, Ohio Temps has budgeted to supply 80,000 hours of contract labor. Its variable costs are $10 per hour, and its fixed costs are $240,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labor at full cost plus 25%. Read the requirements. Requirement 1. Calculate the price per hour that Ohio Temps should charge based on Mason's proposal. Begin by determining the formula to calculate the price per hour based on Mason's proposal, then calculate the price. (Complete all answer boxes. Round the price per hour to two decimal places.) Full cost per hour 13 (100% + Markup percentage) = 25 % Price per hour 16.25 Requirements 1. Calculate the price per hour that Ohio Temps should charge based on Mason's proposal. 2. The marketing manager supplies the following information on demand levels at different prices: Price per Demand Hour (Hours) $ 14 129,000 15 108,000 16 80,000 17 72,000 18 67,000 Ohio Temps can meet any of these demand levels. Fixed costs will remain unchanged for all the demand levels. On the basis of this additional information, calculate the price per hour that Ohio Temps should charge to maximize operating income. - x