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Shrek Construction Company builds residential houses. The company believes that it will be a successful bidder on 8 jobs in the coming year with the
Shrek Construction Company builds residential houses. The company believes that it will be a successful bidder on 8 jobs in the coming year with the following total revenues and costs: Revenue $10,545,000 Direct Materials $2,610,000 Direct Labor 3,017,900 Subcontractors 2,285,380 7,913,280 Overhead and Profit $ 2,631,720 Part 1 Calculate the markup percentage on total direct costs. Assume the subcontractors are considered a direct cost. (3 points) Part 2 What would Shrek bid on a job with estimated direct costs of $579,000? (3 points)
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