Business FinancesQuestion 1196 of 1605
A change order adds $3,200 of direct cost to a job. If the contractor applies his standard 30% markup, how much should the change order add to the contract price?
a.$4,571
b.$4,160
c.$960
d.$3,200
Explanation
Markup = $3,200 x 30% = $960. Change order price = $3,200 + $960 = $4,160. Change orders should carry the same markup as base work to protect margin.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)