Solve price per hour that north dakota temps charge

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North Dakota ?Temps, a large labor? contractor, supplies contract labor to? building-construction companies. For 2017?, North Dakota Temps has budgeted to supply 83,000 hours of contract labor. Its variable costs are $11 per? hour, and its fixed costs are $166,000. Roger? Mason, the general? manager, has proposed a? cost-plus approach for pricing labor at full cost plus 25?%.

Problem 1: On the basis of the additional? information, calculate the price per hour that North Dakota Temps should charge to maximize operating income.

Problem 2: First select the formula that will be used to determine the optimal price per? hour, then calculate the total contribution at each price per hour.

Reference no: EM132666076

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