Question

If a contractor receives payment of 1,480.00, pays 1,111.74 for labor and materials and then deducts 18% of the payment for overhead, how much profit remains?

Answer 1

In the given question, the contractor receives a payment of 1480.00. Then he has to pay for labours and materials and this amounts to 1111.74. On the remaining amount the contractor has to deduct 18% as overhead cost.
Then the amount of money left after the labour payments = 1480 - 1111.74
                                                                                            = 368.26
Now the overhead cost of 18% needs to be found from the amount of money left.
Then the overhead cost = 368.26 * 18/100
                                       = 66.28
So the labour ost takes away 1111.74 and the overhead cost takes out 66.28 from the total payment of 1480.
Then the amount of profit made by the contractor = 368.26 - 66.28
                                                                                 = 301.98
So the contractor makes a profit of 301.98