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Direct and indirect cost for a negotiated scope is $612,500. The contractor requires a 12.5% margin on selling price. What selling price is required?

Correct Answer

D) $700,000

Margin is based on selling price, not simply added to cost.

Answer Options
A
$689,063
B
$705,125
C
$735,000
D
$700,000

Why This Is the Correct Answer

Margin is based on selling price, not simply added to cost.

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