Business FinancesQuestion 1113 of 1632
A contractor's job has $10,000 direct costs. He adds 15% for overhead and then 10% profit on the resulting subtotal. What is the final price?
a.$12,500
b.$11,650
c.$12,650
d.$12,750
Explanation
Direct cost $10,000 + 15% overhead ($1,500) = $11,500 subtotal. Then 10% profit on $11,500 = $1,150. Final price = $11,500 + $1,150 = $12,650. Order matters: overhead first, then profit on the total.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)