cost accounting

XY Construction Company builds houses. Each job requires a bid. XY Company's bidding policy is to estimate the costs of materials, direct labor, and subcontractor costs. These are tolaled and a markup is applied to cover overhead and profit. In the coming year, the company believes it will be the successful bidder on ten jobs with the following total revenues and costs: The residual will cover overhead and profits. Required: What is the markup percentage on total direct costs? A. 6% B. 5% C. 8% 0.17%