Business FinancesQuestion 1194 of 1605
A contractor estimates a kitchen remodel: cabinets $8,000, countertops $3,500, labor $6,000, and permit $500. He adds a combined 22% for overhead and profit. What is the total price (nearest dollar)?
a.$21,960
b.$22,500
c.$18,000
d.$21,000
Explanation
Direct costs = $8,000 + $3,500 + $6,000 + $500 = $18,000. Overhead and profit = $18,000 x 22% = $3,960. Total = $18,000 + $3,960 = $21,960.
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