A change order cost is $4,200 and markup is 18 percent. What billed amount results?
Correct Answer
B) $4,956.
Markup is $4,200 x 18 percent = $756. Total is $4,956.
Why This Is the Correct Answer
Markup is $4,200 x 18 percent = $756. Total is $4,956.
Why the Other Options Are Wrong
Option A: $4,536.
$4,536. is below the supported result for change order markup; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $5,200.
$5,200. is above the supported result for change order markup; it likely adds scope or money the rule does not allow.
Option D: $5,420.
$5,420. is above the supported result for change order markup; it likely adds scope or money the rule does not allow.
Memory Technique
Pricing Cost money shelf: cost for markup, price for margin.
Reference Hint
Study anchor (closed-book): memorize Change order markup from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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