Shale Remodeling uses time and materials pricing. It is setting prices for next year using...
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Accounting
Shale Remodeling uses time and materials pricing. It is setting prices for next year using the following information:
| Labor rate, including fringe benefits | $ | 86 | per hour |
| Annual labor hours | 3,100 | hours | |
| Annual materials purchase | $ | 1,316,250 | |
| Materials purchasing, handling, and storage | $ | 315,900 | |
| Overhead for depreciation, taxes, insurance, etc. | $ | 780,000 | |
| Target profit margin for both labor and materials | 25 | % | |
What should Shale set as the materials markup per dollar of materials used?
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