Calculate the price per hour that abc should charge

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ABC Company, a large labour contractor, supplies contract labour to building construction companies. For 2018, ABC has budgeted to supply 80,000 hours of contract labour. Its variable cost is ¢12 per hour and its fixed costs are ¢240,000. Ali, the general manager, has proposed a cost-plus approach for pricing labour at full cost plus 20%.

Question 1: Calculate the price per hour that ABC should charge based on Ali's proposal.

Reference no: EM132546565

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