A change has $135,750 direct cost with 10 percent overhead and 5 percent profit applied after overhead. What total is proposed?
Correct Answer
C) $156,791
With overhead: $135,750 x 1.10 = $149,325. With profit on that subtotal: $149,325 x 1.05 = $156,791.
Why This Is the Correct Answer
The calculation gives $156,791 for the stated change markup.
Why the Other Options Are Wrong
Option A: $149,325
This applies overhead and leaves out the profit.
Option B: $156,112
This adds both percentages to direct cost instead of applying profit after overhead.
Option D: $142,538
This applies profit and leaves out the overhead.
Memory Technique
Keep a closeout folder beside change markup - roofing foreman checks substrate condition: if one number is skipped, the option drifts away from $156,791.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "change markup calculation" to confirm that The calculation gives $156,791 for the stated change markup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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