Question

Marigold Corp. provides financial consulting and has collected the following data for the next year’s budgeted activity for a lead consultant. Consultants’ wages $100000 Fringe benefits $32500 Related overhead $27500 Supply clerk’s wages $17500 Fringe benefits $3000 Related overhead $19000 Profit margin per hour $20 Profit margin on materials 15% Total estimated consulting hours 5000 Total estimated material costs $158000 A consulting job takes 20 hours of consulting time and $180 of materials. The client’s bill would be $1220. $1072. $892. $1292.

Answer 1

Answer:

$1220

Explanation:

Total Consultant's wage and benefits = $100,000 + $32,500 + $27,500 = $160,000

Consultant's wage and benefits per hour = $160,000 ÷ 5,000 = $32.00

Price per hour = $32.00 + $20.00 = $52.00

Client's bill = ($52 × 20) + 180 = $1,220

Therefor, the Client's bill is $1,220.