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 custom room addition job. The estimated cost associated with the new room addition is $500,000. The markup on the project cost is 35%.What is the cost-plus price required to bid on the new custom room addition job?

Answer 1

What is the cost-plus price required to bid on the new custom room addition job?

$675000

Step-by-step explanation:

Cost plus pricing=break even price*profit marginal goal

Cost plus pricing=500000*1,35

Cost Plus pricing=675000