Question

Johnson Construction Company uses cost-plus pricing to determine costs and place bids on local jobs. The manager needs to compute the cost-plus price to place a bid on a community swimming pool, deck, and spa. The estimated cost associated with the new project is $225,000. The markup on the project cost is 40%. What is the cost-plus price required to bid on the new project?

Answer 1

Answer:

Price= $315,000

Explanation:

Giving the following information:

The manager needs to compute the cost-plus price to place a bid on a community swimming pool, deck, and spa. The estimated cost associated with the new project is $225,000. The markup on the project cost is 40%.

Price= 225,000* 1.40= $315,000