Direct cost is $48,000 and markup is 18 percent of cost. What selling price results?
Correct Answer
D) $56,640.
Markup is $48,000 x 18 percent = $8,640. Selling price is $56,640.
Why This Is the Correct Answer
Markup is $48,000 x 18 percent = $8,640. Selling price is $56,640.
Why the Other Options Are Wrong
Option A: $39,360.
$39,360 subtracts the 8,640 from the first step instead of adding it. The correct calculation is 48,000 x 0.18 = 8,640; 48,000 + 8,640 = 56,640.
Option B: $48,000.
$48,000 leaves out the 8,640 from the first step. The correct calculation is 48,000 x 0.18 = 8,640; 48,000 + 8,640 = 56,640.
Option C: $8,640.
$8,640 stops at the first result and never finishes the calculation. The correct calculation is 48,000 x 0.18 = 8,640; 48,000 + 8,640 = 56,640.
Reference Hint
Study anchor (closed-book): memorize Markup from CSLB Law and Business Study Guide; California tax and payroll guidance / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
More Law & Business Questions
A contractor pays workers through a payment app but does not issue itemized pay statements. What is missing?
Apply California’s standard overtime rules, with no alternative-workweek or other exception. A nonexempt worker at a regular rate of $36 per hour works 15 hours in one day. What is the day's gross pay, ignoring weekly overtime?
A supplier delivers special-order windows to the site, but the contract does not list when material payments are due. What should be checked?
A site checklist requires 31 separate SDS records, one for each listed product. It contains 27 valid records corresponding to 27 different listed products, with no duplicates or shared SDS entries. How many required records are missing?
In the bathroom addition file, cash is $28,000, receivables are $44,000, inventory is $16,000, and current liabilities are $60,000. What is the quick ratio?
A worker requests their own payroll records, but the company says only managers may see them. What should be reviewed?
Special-order cabinets are stored at the supplier, but the contract only pays for materials delivered to the job. What should be checked?
A contractor is unsure whether a publicly funded building upgrade is public work. What is the best first step?
A contractor's workers' compensation certificate lists the policy number but omits effective and expiration dates. What is the problem?
A jobsite stores flammable liquid next to ignition sources and exits. What is the best correction?