Contracts & ExecutionQuestion 154 of 1605
A contractor wants a 30% markup on a job whose costs are $50,000. What selling price should the contractor bid?
a.$53,000
b.$60,000
c.$65,000
d.$71,400
Explanation
Markup is added to cost: selling price = cost x (1 + markup) = $50,000 x 1.30 = $65,000. The $15,000 difference is the gross profit on the job.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- A grading contract pays $4.50 per cubic yard of soil excavated, with the final quantity measured in the field. This is a:
- A "guaranteed maximum price" (GMP) contract protects the owner because:
- A contractor's direct job costs are $80,000 and the contract sells for $100,000. What is the gross margin percentage on this job?
- A contractor needs a 25% gross margin on a job. If the direct costs are $30,000, what selling price achieves that margin?
- A bid includes $60,000 in labor and materials, $12,000 in overhead, and the contractor wants $8,000 profit. What is the total bid price?
- A contractor's annual overhead is $120,000 and projected annual direct job costs are $600,000. What overhead rate should be applied to each job's direct costs?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)