In the flooring upgrade file, a $61,200 project has approved change orders totaling $8,900 and credits totaling $5,450. What adjusted contract price should be used?
Correct Answer
B) $64,650.
The adjusted price is $61,200 + $8,900 - $5,450 = $64,650.
Why This Is the Correct Answer
The adjusted price is $61,200 + $8,900 - $5,450 = $64,650.
Why the Other Options Are Wrong
Option A: $63,650.
$63,650. is below the supported result for contract balance calculation; it likely uses the wrong base, period, or account bucket.
Option C: $70,100.
$70,100. is above the supported result for contract balance calculation; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $75,550.
$75,550. 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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