Business FinancesQuestion 335 of 690
A contractor reviews three completed jobs and finds Job A earned $12,000 profit on $100,000 revenue, Job B earned $9,000 on $90,000, and Job C earned $4,000 on $80,000. Which job had the HIGHEST profit margin?
a.All three were equal
b.Job C
c.Job A
d.Job B
Explanation
Margin = Profit ÷ Revenue. Job A = $12,000 ÷ $100,000 = 12%; Job B = $9,000 ÷ $90,000 = 10%; Job C = $4,000 ÷ $80,000 = 5%. Job A has the highest margin.
Practice all 690 questions free — no signup required.
Related questions on this topic
- Which document collects an independent contractor's name, address, and taxpayer identification number so the payer can later issue a 1099-NEC?
- A contractor's overhead is the same each month whether it completes 2 jobs or 8 jobs. Therefore, the per-job share of overhead is LOWEST when the contractor:
- A schedule of values that allocates more value to early line items than the work actually justifies is sometimes called "front-loading." From the owner's perspective, the risk of front-loading is that:
- A contractor that fails to make required quarterly estimated tax payments to the IRS during the year is most likely to face:
- A contractor's fixed overhead is $9,000 per month and variable costs are 75% of revenue. If the contractor produces $30,000 of revenue in a month, what is the net result for that month?
- A contractor purchases materials on 30-day terms with a 2% discount if paid within 10 days. On a $20,000 invoice, how much is saved by paying within 10 days?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California CSLB Contractor License Law & Business Exam · How we review