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?

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