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11 January, 23:57

If staff salaries were $44,000/month last year, and the yearly cost increase from last year to this year $108,000, what is the monthly labor cost this year?

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  1. 12 January, 00:46
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    The monthly labor cost this year=$53,000

    Explanation:

    Step 1: Determine yearly cost of labor last year

    T=C*N

    where;

    T=total cost of labor last year

    C=labor cost per month

    N=number of months in a year

    In our case;

    T=unknown, to be determined

    C=$44,000 per month

    N=12 months

    Replacing;

    T = (44,000*12) = $528,000

    Step 2: Determine yearly cost of labor this year

    This years cost of labor can be expressed as;

    Y=T+I

    where;

    Y=this year's labor cost

    T=last years labor cost

    I=the increase in cost from last year to this year

    In our case;

    Y=unknown to be determined

    T=$528,000

    I=$108,000

    Replacing;

    Y = (528,000+108,000) = $636,000

    Step 3: Determine monthly cost of labor for this year

    Monthly labor cost this year=this years labor cost/number of months in a year

    where;

    Monthly labor cost this year=unknown to be determined

    this years labor cost=$636,000

    number of months in a year=12

    Replacing;

    Monthly labor cost this year = (636,000/12) = $53,000

    The monthly labor cost this year=$53,000
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