A contractor wins a job for $300,000 and incurs total costs of $264,000. What is the profit margin on the selling price?
a.13.6%
b.10%
c.12%
d.36%
Explanation
Profit = $300,000 − $264,000 = $36,000. Margin = Profit ÷ Selling Price = $36,000 ÷ $300,000 = 0.12 = 12%.
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