If a contractor pays an average wage of $20.00 per hour and wants to make a
15% mark-up on the cost of labour, what will the contractor charge as an average
labour cost on contracts?
20 * 1.15 = ?
23.00
To calculate the average labor cost on contracts, we need to determine the mark-up on the cost of labor.
Step 1: Calculate the mark-up amount:
Mark-up % = 15% of the cost of labor = 0.15 * $20.00 = $3.00
Step 2: Add the mark-up to the cost of labor:
Average labor cost on contracts = Cost of labor + Mark-up amount
= $20.00 + $3.00
= $23.00
Therefore, the contractor will charge an average labor cost of $23.00 on contracts.
To calculate the average labor cost that the contractor will charge on contracts, we need to add a 15% markup to the average wage of $20.00 per hour.
Step 1: Calculate the markup amount
The markup is given as 15% of the cost of labor. To find the markup amount, you can multiply the average wage by 15% (0.15).
Markup amount = $20.00 * 0.15 = $3.00
Step 2: Calculate the total labor cost
The total labor cost is the sum of the average wage and the markup amount. In this case, it would be:
Total labor cost = Average wage + Markup amount = $20.00 + $3.00 = $23.00
Therefore, the contractor will charge an average labor cost of $23.00 per hour on contracts.