A change estimate has $36,800 direct cost and an allowed 18% markup. What total should be submitted?
Correct Answer
A) $43,424
Apply markup to direct cost.
Why This Is the Correct Answer
Apply markup to direct cost.
Why the Other Options Are Wrong
Option B: $39,744
$39,744 is below the supported result for markup; it likely uses the wrong base, period, or account bucket.
Option C: $42,320
$42,320 is below the supported result for markup; it likely uses the wrong base, period, or account bucket.
Option D: $45,264
$45,264 is above the supported result for markup; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Markup fence: markup starts at cost, margin looks back from price.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Change estimating; markup on direct cost; verify quantity math, FL permit status, notice step, or field-control timing.
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