A signed change order adds $4,250 of cabinet work plus a 12 percent approved markup. What is the change order total?
Correct Answer
B) $4,760
The approved markup is applied to the added work amount: $4,250 plus 12 percent equals $4,760.
Why This Is the Correct Answer
The approved markup is applied to the added work amount: $4,250 plus 12 percent equals $4,760.
Why the Other Options Are Wrong
Option A: $4,335
$4,335 is below the supported result for project contracts; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $5,100
$5,100 is above the supported result for project contracts; it likely adds scope or money the rule does not allow.
Option D: $3,740
$3,740 is below the supported result for project contracts; it likely omits part of the approved scope, cap, credit, or holdback.
Memory Technique
Two shelves for project contracts: cost side first or price side first.
Reference Hint
Study anchor (closed-book): memorize Project contracts from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159; know the rule or calculation trigger without relying on exam-room lookup.
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