Q1 Quick Konstruct builds custom, high-end homes. Each home requires a bid, and Quick's bidding practise is to estimate the costs of materials, direct labour and subcontracting fees. These are totalled and markup is applied to cover overhead and profit. In the next year, Quick belleves it will be the successful bidder on 10 jobs with the following total revenues and costs: $648,000 tructions a) b) The excess is created to cover overhead and profits. a) Revenues Materials Direct labour Subcontractors Excess b) $200,000 $250,000 $150,000 Answer below: What is the markup percentage on total direct costs? If Quick is asked to bid on a job with estimated direct costs of $55,000, what is the amount of the total bid? If the customer complains that the profit is too high, how might Quick counter that comment? Show Calculations. Answer below: $600,000 $48,000 Show Calculations 4

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