For an approved change, $6,400 in direct cost receives an 18 percent signed markup. What total price belongs on the change order?
Correct Answer
A) $7,552.
Eighteen percent of $6,400 is $1,152. Adding it to the base cost gives $7,552.
Why This Is the Correct Answer
Eighteen percent of $6,400 is $1,152. Adding it to the base cost gives $7,552.
Why the Other Options Are Wrong
Option B: $7,168 total.
$7,168 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: $7,400 total.
$7,400 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: $7,680 total.
$7,680 total. is above the supported result for change order markup calculation; it likely adds scope or money the rule does not allow.
Memory Technique
Change Order Markup fence: markup starts at cost, margin looks back from price.
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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