A roofing foreman checks the substrate condition: 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
The calculation gives $156,791 for the stated change markup. Other choices: the distractors come from omitting an adjustment, using the wrong rate, or applying a rounded shortcut for calculation item 359.
Why This Is the Correct Answer
The calculation gives $156,791 for the stated change markup.
Why the Other Options Are Wrong
Option A: $141,111
change markup - roofing foreman checks substrate condition, choice a: $141,111 applies only part of the markup/burden sequence or applies it to the wrong subtotal.
Option B: $172,470
change markup - roofing foreman checks substrate condition, choice c: $172,470 is wrong because $172,470 applies only part of the markup/burden sequence or applies it to the wrong subtotal.
Option D: $195,988
change markup - roofing foreman checks substrate condition, choice d: $195,988 applies only part of the markup/burden sequence or applies it to the wrong subtotal.
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.
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