Chapter 9

Question 1

ROI Markup

Answer 1

Markup = (Desired ROI % x Amount Invested) / Units Produced

Question 2

Time and Material Pricing Steps

Answer 2

1) Calculate Labour Charge
2) Calculate Material Markup %
3) Calculate Price Quote

Question 3

Labour Charge

Answer 3

(Total Labour Related Cost / Total Hours Worked) + Desired Profit per Hour

Question 4

Material Markup %

Answer 4

Material Markup = (Total Material Charges Charges) + Desired Material Profit Margin