J Limited makes furniture with a mark-up of 40%. A job 10 km away involves: Materials 400; Labour 240; Travel 2 per km each part of journey. What price will the company quote?

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SSC Financial and Cost Accounting P-1 QUESTION #6151

Question 1

J Limited makes furniture with a mark-up of 40%. A job 10 km away involves: Materials $400; Labour $240; Travel $2 per km each part of journey. What price will the company quote?

$916
$924
$936
$952✔️

Correct Answer Explanation

Option D ($952) is correct.

Travel = 10 km each way = 20 km × $2 = $40

Total cost = $400 + $240 + $40 = $680

Quoted price = $680 × 1.40 = $952

More Options