A change order base cost is $4,600 and the signed markup is 12 percent. What total change amount should be shown?
Correct Answer
B) $5,152.
Twelve percent of $4,600 is $552. Adding it to the base cost gives $5,152.
Why This Is the Correct Answer
Twelve percent of $4,600 is $552. Adding it to the base cost gives $5,152.
Why the Other Options Are Wrong
Option A: $5,060.
$5,060. is below the supported result for change order markup calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $5,520.
$5,520. is above the supported result for change order markup calculation; it likely adds scope or money the rule does not allow.
Option D: $6,152.
$6,152. is above the supported result for change order markup calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Two shelves for change order markup: cost side first or price side first.
Reference Hint
Study anchor (closed-book): memorize Change order markup calculation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / B&P Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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