A negotiated scope has expected cost of $785,400. The contractor requires 15% margin on sales. What selling price is required?
Correct Answer
A) $924,000
With profit defined as 15% of selling price, cost is 85% of selling price. Required price = $785,400 ÷ 0.85 = $924,000. Multiplying cost by 1.15 gives $903,210, which is a cost markup, not the requested sales margin.
Why This Is the Correct Answer
With profit defined as 15% of selling price, cost is 85% of selling price. Required price = $785,400 ÷ 0.85 = $924,000. Multiplying cost by 1.15 gives $903,210, which is a cost markup, not the requested sales margin.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
More Contract Admin Questions
A notice of nonpayment negligently omits a detail, and neither the contractor nor the surety is prejudiced. What is the effect on the claim?
A court enforces a lien against the improvement alone rather than the land. What may it order?
A general contractor wants an uncertified subcontractor to perform carpentry within the general contractor’s own licence scope. Does s. 489.113(2) allow it?
Who can compel a local government to create a residential master building permit program?
Which item is expressly listed as an example in the single-trade inspection definition in Florida Statutes section 553.791(1)(r)?
A contractor has Florida construction contracts with a city, a state department other than DOT, and a private owner. The private written contract is covered by section 715.12. Which listed provisions govern their respective prompt-payment regimes?
What must accompany a bid for construction on a Florida public project under s. 489.131(2)?
A Florida state agency buys ordinary nonconstruction goods under section 215.422. An undisputed, authorized invoice and the goods were received, inspected and approved on the same date. No vendor error or filing waiver applies. No warrant issues within 40 days. Which interest rule applies?
For a private-contract forecasting exercise, this period’s earned work is $258,400 and the stated holdback is 7.5%. With no prior-payment offsets or other deductions, what amount remains after retainage?
Under a Florida private written construction contract covered by section 715.12, an owner disputes drywall billing. Roofing payment is otherwise due and unaffected by that dispute; the contract has no contrary withholding term. May this dispute justify withholding the roofing payment?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A uniform rectangular concrete retaining wall is 112 ft long, 10 ft high and 10 in thick. Excluding footing volume, include a stated 6% allowance. What wall-concrete estimate results to the nearest 0.1 cy?
Next Question
What limits apply to an annual facility maintenance permit used by a school board?
