Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and practical questions. Enhance your knowledge and understanding of contractor roles, industry standards, and Utah-specific regulations with our detailed study materials and expert insights. Start your preparation today!

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If the direct costs of a job are $41,000, with overhead at 15% and desired profit at 6%, what is the total bid amount presented to the client?

$51,898.73
$52,736.89
$50,189.98
$53,693.24

The correct answer is: $51,898.73

To determine the total bid amount presented to the client, we start with the direct costs of the job, which is $41,000. Next, we need to calculate the overhead and the desired profit, applying them to the direct costs. First, calculate the overhead, which is 15% of the direct costs. To do that, you multiply $41,000 by 0.15: 15% of $41,000 = $41,000 * 0.15 = $6,150. Next, add this overhead amount to the direct costs to get the total costs so far: Total costs = Direct Costs + Overhead = $41,000 + $6,150 = $47,150. Now, we calculate the desired profit, which is 6% of the total costs computed to this point. This means we need to find 6% of $47,150 by multiplying: 6% of $47,150 = $47,150 * 0.06 = $2,829. Finally, to find the total bid amount, we add the desired profit to the total costs: Total bid amount = Total Costs + Desired Profit = $47,150 + $2,829 = $49,979