VIRGINIA CONTRACTORS STUDY - A & B LICENSE (CALCULATION PART) Questions with Complete Correct Answers | Grade A+

A lump sum contract on a project has a total contract price of $200,000. Retainage has been held back at 10%. The contractor has received progress payments of 90% of the project. The contractor submits a request for the final payment for the now completed project. The final payment amount should be for A. less than 25,000$ b. between 25,000$ & 35,000$ c. between 35,000$ & 40,000$ d. more than 40,000$ Ans: c. between 35,000$ & 40,000$ A contractor agrees to unit price contract to Product A fir $50 per unit, product B for $50 per unit, and product C for $375 per unit. The contractor is also to add 30% for overhead and profit. How much the contractor should be paid for producing 27 units of product A, 56 units of product B and 78 units of product C? a. less than 40,000$ b. between 40,000$ & 45,000$ c. between 45,000 & 50,000$ d. more than 50,000$ Ans: b. between 40,000$ & 45,000$ A contract calls for liquidated damage of 500$ per day. The project completed five days late because it was delayed by rain. The completion would have been 10 days earlier if it were not for the rain delay. There was a 500$ bonus per day for the contractor early completion. No extension of time was requested or granted. How much does the contractor earn or owe? a. owes 2,500 in liquidated damage b. owes 500 in liquidated damage c. is due a 2,500 bonus from the owner d. is due a 500 bonus from the owner Ans: A job has a price of 165,000 after direct costs and overhead are factored. What will the final bid be if the profit markup is 11.5% a. 186,440 b. 183,975 c. 179,545 d. 189,874 Ans: a. 186,440 Give the following information, is it advantageous to purchase or rent this particular piece of equipment if it has 3 useful years? purchase rent Initial cost 10,000 0 rental 0 550 salvage value 2,0000 0 insurance 40 0 operating costs 200 0 a. renting saves 840 b. renting saves 2,280 c. purchasing saves 840 d. purchasing saves 3,160 Ans: d. purchasing saves 3,16