Business FinancesQuestion 1182 of 1605
A contractor bids a job with $15,000 direct cost, adds 18% overhead, then 12% profit on the subtotal. What is the total bid (rounded to the nearest dollar)?
a.$19,530
b.$18,000
c.$19,470
d.$19,824
Explanation
Direct $15,000 + 18% overhead ($2,700) = $17,700. Profit = 12% of $17,700 = $2,124. Total bid = $17,700 + $2,124 = $19,824.
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