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Markup on Cost, Cost-Based Pricing Arthur Quilon Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that

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Markup on Cost, Cost-Based Pricing Arthur Quilon Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Quillen's direct costs and subcontractor costs as well as an amount referred to as "overhead and profit. Quillen's bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors' costs. These are totaled, and a markup is applied to cover overhead and profit. In the coming year, the company believes it will be the successful bidder on 10 jobs with the following total revenues and costs: $8,492,960 $2,223,000 Revenue Direct materials Direct labor Subcontractors 2,010,000 3,342,000 7,583,000 $909,960 Overhead and profit

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