Calculate the total cost for a Louisiana residential contractor to obtain initial licensing with gross receipts of $250,000: license fee $150, application fee $75, examination fee $50, and required continuing education $200.
Correct Answer
C) $475
Total initial licensing cost = $150 + $75 + $50 + $200 = $475
Why This Is the Correct Answer
$150 + $75 + $50 + $200 = $475. All four fees listed are required components of initial licensing and must be summed together. The gross receipts figure is a distractor — it does not affect the fee calculation in this problem.
Why the Other Options Are Wrong
Option A: $325
$325 omits the $200 continuing education cost ($150 + $75 + $50 + $200 ≠ $325). Candidates who skip CE as 'optional' arrive here.
Option B: $375
$375 likely results from omitting one fee component, such as forgetting the examination fee ($150 + $75 + $200 - $50 = $375 or similar partial sums).
Option D: $425
$425 results from omitting the $50 examination fee ($150 + $75 + $200 = $425) or some other single-component omission.
Memory Technique
LA-LACE: License + Application + (exam) + Continuing Education. Four items, four letters. Add them all: $150 + $75 + $50 + $200 = $475.
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