In the window replacement file, a $52,500 project has approved change orders totaling $7,250 and credits totaling $4,600. What adjusted contract price should be used?
Correct Answer
B) $55,150.
The adjusted price is $52,500 + $7,250 - $4,600 = $55,150.
Why This Is the Correct Answer
The adjusted price is $52,500 + $7,250 - $4,600 = $55,150.
Why the Other Options Are Wrong
Option A: $54,150.
$54,150. is below the supported result for contract balance calculation; it likely uses the wrong base, period, or account bucket.
Option C: $59,750.
$59,750. is above the supported result for contract balance calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $64,350.
$64,350. is above the supported result for contract balance calculation; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Updating Summary money test: bucket before math for contract balance.
Reference Hint
Study anchor (closed-book): memorize Contract balance 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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