If contractors charge a blended labor burden rate to a client, and alter their craft mix as discussed in Exercise Four, what would that potentially do to their profit?
Exercise 4
Assuming five craftsmen for each of the crafts in Table 18.2, a) what would be the total blended labor burden percentage markup, b) what would happen to that rate if you eliminated the craft with the highest burden and doubled the manpower from the craft with the lowest burden, and c) what would happen to the original rate if you eliminated the lowest burdened craft and doubled the manpower from the highest craft?
