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20 June, 06:38

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?

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  1. 20 June, 07:35
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    What is the cost-plus price required to bid on the new custom room addition job?

    $675000

    Explanation:

    Cost plus pricing=break even price*profit marginal goal

    Cost plus pricing=500000*1,35

    Cost Plus pricing=675000
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