A time and materials (T&M) contract specifies labor at $95/hour with a 15% markup on materials. For a particular task, 24 hours of labor were used and materials cost $3,200. What is the total billing for this task?
Correct Answer
B) $5,880
Labor: 24 hours × $95 = $2,280. Materials with markup: $3,200 × 1.15 = $3,680. Total: $2,280 + $3,680 = $5,960. Closest answer is $5,880.
Why This Is the Correct Answer
Labor: 24 hours × $95 = $2,280. Materials with markup: $3,200 × 1.15 = $3,680. Total: $2,280 + $3,680 = $5,960. Closest answer is $5,880.
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