A reimbursable expense is $8,900 with 12 percent markup. What amount should be billed?
Correct Answer
D) $9,968.
Markup is $8,900 x 12 percent = $1,068. Total billing is $9,968.
Why This Is the Correct Answer
Markup is $8,900 x 12 percent = $1,068. Total billing is $9,968.
Why the Other Options Are Wrong
Option A: $9,568.
$9,568. is below the supported result for reimbursable expense markup; it likely uses the wrong base, period, or account bucket.
Option B: $9,780.
$9,780. is below the supported result for reimbursable expense markup; it likely uses the wrong base, period, or account bucket.
Option C: $9,850.
$9,850. is below the supported result for reimbursable expense markup; it likely uses the wrong base, period, or account bucket.
Memory Technique
Reimbursable fence: markup starts at cost, margin looks back from price.
Reference Hint
Study anchor (closed-book): memorize Reimbursable expense 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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