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You have decided to enter into a time and materials contract with a supplier for your...

You have decided to enter into a time and materials contract with a supplier for your project. The project will require two different types of labor categories, the first which charges $200 per hour and the second which charges $175 per hour. The project requires 50 hours of the first labor category and 40 of the second. You will also purchase $5,000 of tools and equipment with no fee and $25,000 of materials with a 2% fee added on. What will you owe on this contract?

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Answer #1
We will owe the following amounts on the given contract:
Particulars Working Amount($)
Labour Cost:
First Category (50hrs*$200 p/hr) 10000
Second Category (40hrs*$175p/hr) 7000
Cost of Tools: 5000
Cost of Materials including fee: ($25000*1.02) 25500
Total Amount we will owe on this contract is : 47500
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