Finanzas ComercialesPregunta 1228 de 1605
If a contractor's actual overhead runs 22% of direct costs but he only marks up 15% for overhead, over a year of $500,000 direct costs he under-recovers roughly:
a.$110,000
b.$35,000
c.$7,500
d.$75,000
Explicación
Under-recovery rate = 22% - 15% = 7% of direct costs. 7% x $500,000 = $35,000 of overhead not recovered through pricing, which comes straight out of profit. Accurate overhead rates are critical.
Practica las 1605 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- A contractor wants to know the profit built into a bid before overhead. That figure is the:
- A homeowner's $30,000 remodel contract allows a 10% down payment maximum under home improvement rules. But 10% is $3,000, which exceeds the $1,000 cap. The lawful maximum down payment is:
- A contractor's job took 220 labor hours at a burdened rate of $48/hour. Materials were $9,400 and a sub billed $6,200. What was the total direct cost?
- A balance sheet is said to 'balance' because:
- A contractor factors (sells) $50,000 of receivables to a factor who advances 90% now and charges a 3% fee on the face amount. How much cash does the contractor receive up front, and what is the fee?
- A contractor's income statement is prepared monthly, but the balance sheet is dated December 31. This is because:
Última revisión: · proceso editorial
Sen Lin, Fundador de PrepPass · Verificado con California CSLB Contractor License Law & Business Exam · Cómo revisamos
Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)