An approved change has $5,250 in documented base cost and a signed 14 percent markup. What total price should be shown on the change order?
Correct Answer
A) $5,985.
Fourteen percent of $5,250 is $735. Adding it to the base cost gives $5,985.
Why This Is the Correct Answer
Fourteen percent of $5,250 is $735. Adding it to the base cost gives $5,985.
Why the Other Options Are Wrong
Option B: $4,515.
$4,515 subtracts the 735 from the first step instead of adding it. The correct calculation is 5,250 x 0.14 = 735; 5,250 + 735 = 5,985.
Option C: $5,250.
$5,250 leaves out the 735 from the first step. The correct calculation is 5,250 x 0.14 = 735; 5,250 + 735 = 5,985.
Option D: $735.
$735 stops at the first result and never finishes the calculation. The correct calculation is 5,250 x 0.14 = 735; 5,250 + 735 = 5,985.
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 written change order requirements; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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