2C3C ALMELO MANPOWER INC. PROVIDES CONTRACTED BOOKKEEPING SERVICES....
278.
CSO: 2C3b
LOS: 2C3c
Almelo Manpower Inc. provides contracted bookkeeping services. Almelo has annual
fixed costs of $100,000 and variable costs of $6 per hour. This year the company
budgeted 50,000 hours of bookkeeping services. Almelo prices its services at full cost
and uses a cost-plus pricing approach. The company developed a billing price of $9 per
hour. The company’s mark-up level would be
a.
12.5%.
b.
33.3%.
c.
50.0%.
d.
66.6%.