Engine Repair Work Example 24

WorkKey Level: 6
NATEF Task(s): I.B.20, III.B.13, III.B.14

Problem:

As an auto body repair person, you are asked to make repairs on a car that has been involved in a serious accident. Damage was sustained to the left front fender, as well as the right headlight, turn light, right fender, and right quarter panel. After consulting parts books and according to your calculations, these are the labor and parts costs:

Labor (non-taxable)
14 hours for repairs and repainting—$27.50/hour
2 hours of washing and waxing—$9.50/hour

Parts
Paint—$105
Headlight—$85
Turn light—$55
New fender—$265
New quarter panel—$625
Washing/waxing materials—$11.50

Discount on parts only (if paid in cash)
8.75%

Sales tax (on taxable items only)
6%

If the customer pays cash, how much will the repairs total?

Solution:

Labor
(14 hours)($27.50 per hour) = $385
(2 hours)($9.50 per hour) = $19
$385 + $19 = $404

Parts
Paint—$105
Headlight—$85
Turn light—$55
New fender—$265
New quarter panel—$625
Washing/waxing materials—$11.50
$105 + $85 + $55 + $265 + $625 + $11.50 = $1146.50

($1146.50)(8.75%) = (1146.50)(0.0875) = 100.31875
Cash discount = $100.32

$1146.18 – $100.32 = $1046.18 for parts reflecting cash discount
($1046.18)(6%) = (1046.18)(0.06) = 62.7708
Sales tax = $62.77

$404 + $1046.18 + $62.77 = $1512.95 Total