A contractor is analyzing a project that will generate $50,000 monthly revenue for 6 months. Costs are $35,000 monthly for the first 3 months and $40,000 monthly for the last 3 months. What is the project's total profit?
Correct Answer
B) $75,000
Total Revenue = $50,000 × 6 = $300,000. Total Costs = ($35,000 × 3) + ($40,000 × 3) = $105,000 + $120,000 = $225,000. Profit = $300,000 - $225,000 = $75,000
Why This Is the Correct Answer
Total Revenue = $50,000 × 6 = $300,000. Total Costs = ($35,000 × 3) + ($40,000 × 3) = $105,000 + $120,000 = $225,000. Profit = $300,000 - $225,000 = $75,000
More NASCLA Questions
Which AIA document contains the general conditions that govern the rights and responsibilities of all parties in a construction contract?
A construction company has direct labor costs of $85,000, direct materials of $120,000, and overhead costs of $45,000 for a project. What is the total job cost?
What is the primary purpose of job cost accounting in construction?
A construction company has current assets of $350,000 and current liabilities of $280,000. What is the company's working capital?
In CSI MasterFormat, which division covers earthwork and site preparation?
In a mechanical drawing, what does 'CFM' typically measure?
In CSI MasterFormat Division 08, which of the following would typically be included?
On a mechanical plan, what does the symbol 'RTU' typically indicate?
What is the minimum preheat temperature for welding ASTM A992 steel when the ambient temperature is 15°F?
A general contractor's balance sheet shows total assets of $850,000, current liabilities of $320,000, and long-term debt of $180,000. What is the company's equity?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass