Business FinancesQuestion 1217 of 1605
A contractor's bid includes $30,000 labor, $25,000 materials, $15,000 subs, and a 20% markup on the total direct cost. What is the bid price?
a.$84,000 including $14,000 markup
b.$14,000
c.$70,000
d.$78,000
Explanation
Direct cost = $30,000 + $25,000 + $15,000 = $70,000. Markup = 20% x $70,000 = $14,000. Bid = $70,000 + $14,000 = $84,000.
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