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"Several days ago you took your TV set into a shop...




"Several days ago you took your TV set into a shop to have some repair work done. When you later picked up the set, the bill showed a $75 charge for labor. This charge represented two hour of service time-$30 for the first hour and $45 for the second. When questioned about the difference in hourly rates, the shop manager explained that work on your set was started at 4 o?clock in the afternoon. By the time work was completed two hours later at 6 o?clock, an hour of overtime had been put in by the repair technician. The second hour therefore contained a charge for an ?overtime premium? because the company had to pay the repair technician time and a half for any work in excess of eight hours per day. The shop manager further explained that the shop was working overtime to ?catch up a little? on its backlog of repairs, but it still needed to maintain a ?decent? profit margin on the technician?s time. Q:Do you agree with the shop?s computation of the service charge on your job?


Paper#6646 | Written in 18-Jul-2015

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