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%.