Contracts & ExecutionQuestion 184 of 1605
A contractor's bid totals $90,000, of which $54,000 is direct cost. What percentage of the bid is gross profit and overhead combined?
a.40%
b.60%
c.20%
d.166%
Explanation
The amount above direct cost is $90,000 - $54,000 = $36,000. As a percentage of the bid: $36,000 / $90,000 = 40%, which covers both overhead and profit.
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