An approved tenant-improvement change has $6,400 in documented base cost and a signed 11 percent markup. What total price should be shown on the change order?
Correct Answer
A) $7,104.
Eleven percent of $6,400 is $704. Adding it to the base cost gives $7,104.
Why This Is the Correct Answer
Eleven percent of $6,400 is $704. Adding it to the base cost gives $7,104.
Why the Other Options Are Wrong
Option B: $6,704 total.
$6,704 total. is below the supported result for change order markup calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $7,000 total.
$7,000 total. is below the supported result for change order markup calculation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $7,400 total.
$7,400 total. is above the supported result for change order markup calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Checking Written money shelf: cost for markup, price for margin.
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.
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