The first and second units of an assembly take 20 hours and 18 hours of labor time, respectively. The labor cost is $10 per hour, and the material cost is $300 per assembly. What would the contract price be for 1,000 assemblies if the overhead cost associated with 1,000 units is $25,000, and the profit, based upon cost, is 20 percent?

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First we need to calculate the total labor cost for 1000 assemblies Total l... View the full answer