07-27-2023, 04:56 PM
Wage increase %
x
Labor as % of overall costs
=
% product price increase due to labor.
So a 10% increase in wages may only equate to a 2.5% increase in product price, if labor accounts for 25% of costs.
x
Labor as % of overall costs
=
% product price increase due to labor.
So a 10% increase in wages may only equate to a 2.5% increase in product price, if labor accounts for 25% of costs.