What is the contractor's average labour cost if it is $20.00 per hour with a 15% mark-up?

What is the contractor's average labour cost if it is $20.00 per hour with a 15% mark-up?

• A. $17.39
• B. $23.00
• C. $22.00
• D. $25.00

Answer: (B)

To find the contractor's average labour cost when the hourly wage is $20.00 and there is a 15% mark-up, you first need to calculate the total cost of labour including the mark-up. The mark-up is applied to the base labour cost, which is $20.00. To compute the mark-up, multiply the base cost by the percentage: Mark-up = $20.00 x 0.15 = $3.00 Next, add the mark-up to the base labour cost to find the total cost per hour: Total labour cost = Base labour cost + Mark-up Total labour cost = $20.00 + $3.00 = $23.00 Thus, the contractor's average labour cost, including the 15% mark-up, is $23.00. This calculation clearly reflects how the mark-up increases the basic labour rate to determine the overall cost that will be charged.

To find the contractor's average labour cost when the hourly wage is $20.00 and there is a 15% mark-up, you first need to calculate the total cost of labour including the mark-up.

The mark-up is applied to the base labour cost, which is $20.00. To compute the mark-up, multiply the base cost by the percentage:

Mark-up = $20.00 x 0.15 = $3.00

Next, add the mark-up to the base labour cost to find the total cost per hour:

Total labour cost = Base labour cost + Mark-up

Total labour cost = $20.00 + $3.00 = $23.00

Thus, the contractor's average labour cost, including the 15% mark-up, is $23.00. This calculation clearly reflects how the mark-up increases the basic labour rate to determine the overall cost that will be charged.