Question

A family wants to remodel a house and spend at most $135,000 total for the entire project. a)If the builder wants to make a 15% profit on the value of the project, what is the largest amount the family can spend on hard costs (materials, labor, engineering, designing, permits) to be able to pay the builder his profit while staying under the $135,000 budget? b)What is the builder's profit? (Hint: You cannot simply take 15% of $135,000 because the $135,000 includes the builder's profit. Just like in our commission problems, you don't make commission on commission. The percentage is applied to the value of goods and services provided.)

Answer 1

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