Question

A contractor bids a job for $76,900 . Of this , labor costs are $34,675 . Material costs are $24,500. What percent of the total bid is profit and Overhead ?

Answer 1

Step 1

The total cost for the job was $76,900.

The labor cost was $34,675.

The material cost was $24,500.

Required; To find the total percentage for the profit and overhead in his bid.

Step 2

State the formula for the required percentage

`(100)/(x)=\frac{Total\text{ bid}}{76900-(\text{Material cost + labour cost)}}`
`\begin{gathered} (100)/(x)=(76900)/(76900-(34675+24500)) \\ 76900x=100(17725) \\ \end{gathered}`
`\begin{gathered} (76900x)/(76900)=(1772500)/(76900) \\ x=23.0491482 \\ x\approx23\text{\%} \end{gathered}`

Hence the percentage of the total that represents profit and overhead is approximately 23% to the nearest whole number.