Question

A contractor figured materials for a job would cost $2,415. He also estimated labor for the same job would cost $1,832. If he adds 18% to cover overhead and profit, how much will he charge the customer for this job?

Answer 1

=5, 011.46

Step-by-step explanation:

cost of materials : $ 2,415

cost of labor: $ 1,832

Total cost; ( $ 2,415+$ 1,832)= $ 4,247

Add 18 percent mark-up = 4247*1.18

=5, 011.46

Answer 2

$5011.46

Step-by-step explanation:

Charge or selling price is the price at which a good or service is offered for sale by a seller to the buyer.

The components of a selling price are direct labor , materials and expenses cost ,selling and distribution expenses ,factory cost , other production related expenses and the profit margin.

To arrive at the profit margin , a certain percentage of the total cost is added .

So in the case above , 18% of the total cost of $4247 which is $764.46 is added to the cost to arrive at the selling price of $5011,46.