What is the relevant cost of skilled labour to the company

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Reference no: EM133140390

Question - A company is currently preparing a quotation for a new contract which will require 100 labour hours per week over the next eight weeks.

Due to labour being in short supply, two scenarios are under consideration:

(1) To pay existing staff an overtime premium of 50% for the duration of the contract. Existing staff are currently paid £26 per hour.

(2) To recruit labour on a temporary basis for the contract duration. The rate per labour hour will be £30.

What is the relevant cost of skilled labour to the company for this new contract?

A. $3,000

B. $3,900

C. $31,200

D. $24,000

Reference no: EM133140390

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