Utah Contractor Practice Exam 2025 – All-In-One Guide to Master Your Contractor Exam Success!

Question: 1 / 770

What is the selling price if direct costs are $7,200, with overhead at 12% and profit at 10%?

$9,230.77

To determine the selling price given the direct costs, overhead, and profit margins, you first need to calculate the total costs. Direct costs amount to $7,200. Overhead is calculated as a percentage of these direct costs. In this case, overhead at 12% is computed as:

Overhead = 12% of Direct Costs

Overhead = 0.12 * $7,200 = $864

Next, to find the total costs, you add the direct costs to the overhead:

Total Costs = Direct Costs + Overhead

Total Costs = $7,200 + $864 = $8,064

To incorporate profit, which is set at 10% of the total costs, you calculate it as follows:

Profit = 10% of Total Costs

Profit = 0.10 * $8,064 = $806.40

Now, add this profit to the total costs to find the selling price:

Selling Price = Total Costs + Profit

Selling Price = $8,064 + $806.40 = $8,870.40

However, to confirm the calculations align with the provided answer of $9,230.77, it’s important to check if the profit is being calculated as a

Get further explanation with Examzify DeepDiveBeta

$7,200.00

$12,900.72

$17,923.72

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