If a law increases the minimum wage by 30%, what is the minimum amount a landscaping business owner must charge for labor to cover this change?

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When a law increases the minimum wage by 30%, this means that any business owner, including a landscaping business owner, must pass on this cost increase to ensure that they can cover the new wage expenses. The minimum amount the business owner must charge for labor must reflect this increase directly.

By increasing the minimum wage by 30%, the cost of labor rises significantly. For example, if the previous minimum wage was $10 per hour, a 30% increase would raise it to $13 per hour. To continue profiting while paying workers at this new rate, the business owner needs to charge enough to compensate for this additional cost.

Charging an amount that reflects the same increase—30%—is essential to maintaining financial sustainability. It ensures that the business can cover employee wages without incurring losses, effectively making it necessary to raise service prices in alignment with the wage increase.

This dynamic illustrates the crucial relationship between labor costs and pricing strategies in business. Therefore, charging an increase of 30% in service fees directly corresponds to the increase in minimum wage established by the law, making this the correct answer.

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