B determine the desired roi per session 20 x 2352000

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b. Determine the desired ROI per session
c. Calculate the markup percentage on the total cost per session.
d. Calculate the target price per session.
EMILY WELLS E8-9 Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using timeand-material pricing. The following budgeted cost data are available. Time Charges Material Loading Charges Technicians' wages and benefits $150,000 Parts manager's salary and benefits $34,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 42,000 Total budgeted costs $195,000 $91,000 The company has budgeted for 6,250 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $700,000. Instructions a. Compute the rate charged per hour of labor.
b. Compute the material loading percentage.
c. RCE has just received a request for a bid from Buil Builders on a $1,200,000 new home. The company estimates that it would require 80 hours of labor and $40,000 of parts. Compute the total estimated bill.
EMILY WELLS

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