Business FinancesQuestion 1128 of 1605
A subcontractor bids $18,000. The general contractor adds a 12% markup on that subcontract. What is the marked-up amount billed to the owner for that scope?
a.$2,160
b.$20,160
c.$18,000
d.$19,440 markup only
Explanation
Markup = $18,000 x 12% = $2,160. Amount billed = $18,000 + $2,160 = $20,160. The general marks up subcontracts to cover coordination, supervision, and risk.
Practice all 1605 questions free — no signup required.
Related questions on this topic
- A concrete slab is 30 ft x 40 ft x 4 inches thick. How many cubic yards of concrete are needed? (1 cubic yard = 27 cubic feet)
- A contractor pays a mason $28/hour. With payroll burden (taxes, insurance, benefits) adding 35%, what is the fully burdened labor rate?
- A painting job covers 2,400 square feet. One gallon covers 350 sq ft. How many gallons (rounded up to full cans) are needed for two coats?
- A good estimate should include a contingency allowance primarily to:
- Working capital is calculated as:
- A contractor has current assets of $150,000 and current liabilities of $90,000. What is his working capital?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)