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Stark Construction Company builds residential houses. The company believes that it will be a successful bidder on 7 jobs in the coming year with the
Stark Construction Company builds residential houses. The company believes that it will be a successful bidder on 7 jobs in the coming year with the following total revenues and costs: Revenue $12,345,000
Direct Materials $2,100,000
Direct Labor 1,695,000
Subcontractors 4,450,000 8,245,000
Overhead and Profit $ 4,100,000 Part A Calculate the markup percentage on total direct costs. Assume the subcontractors are considered a direct cost. Part B What would Stark bid on a job with estimated direct costs of $944,000?
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