A material escalation clause allows the documented increase above a baseline of $11,800. Actual supplier cost is $13,275. What increase is supported?
Correct Answer
C) $1,475.
The supported escalation is $13,275 - $11,800 = $1,475.
Why This Is the Correct Answer
The supported escalation is $13,275 - $11,800 = $1,475.
Why the Other Options Are Wrong
Option A: $1,275.
$1,275. is below the supported result for escalation documentation; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $1,375.
$1,375. is below the supported result for escalation documentation; it likely omits part of the approved scope, cap, credit, or holdback.
Option D: $25,075.
$25,075. is above the supported result for escalation documentation; it likely adds scope or money the rule does not allow.
Memory Technique
Checking Material contract math: approved scope is the ruler for escalation documentation.
Reference Hint
Study anchor (closed-book): memorize Escalation documentation from CSLB 2026 Law Book; CSLB Home Improvement Contracts / Business and Professions Code Section 7159 home improvement contract requirements; know the rule or calculation trigger without relying on exam-room lookup.
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