Question: What would be the proposed selling price of a job with a total cost to you of $1000, if you wish to make 30% profit?

         a. $1333.33

         b. $1300.00

        c. $1428.57

        d. $1500.50

         See answer at bottom of this page

Pass your Business Exam with confidence

If you will be sitting for a contractors licensing exam in almost any field. Most likely you will be faced with business and law questions. Perhaps, you will be required to take a separate Business and law exam. The reference of choice for the majority of jurisdictions is NASCLA’s “Contractor Guide to Business, Law and Project Management”Unfortunately, NASCLA does not offer practice tests or study guides for its publications. Our Contractor Business and Law Exam Prep Course provides much needed examples with over 150 strategic practice qestions and answers covering the areas most struggled with by examinees, ie; business math and accounting practices. 

Business math and accounting is presented in simple language we contractors easily understand.

You do not need to be a Philadelphia lawyer and CPA to pass your business exam.  We make it really simple.

 Business and Project Management Study Guide 

with Practice Exam 

for contractors and construction trades

ONLY 

$49

NASCLA business/law exam practice test

1. First tier contractors may file claims against a bond if they are not paid within
_______ days after providing the last of their labor or material
a) 60
b) 90
c) 120
d) 180
2. An employer is responsible for paying _____ of the FUTA on an employee’s
wages.
a) all
b) 1/2
c) none
d) 1/3
3. Acme Plumbing has yearly sales of $367,000, Its overhead expense is
$62,000. What is the percentage of overhead to sales?
a) 5.9%
b) 59%
c) .16%
d) 16.9%
4. The Lead Pre-Renovation Education Rule requires the pamphlet, “Protect
your Family From Lead in Your Home” to be distributed to an adult occupant, if
the home was built before 1978 and more than ____ sq. ft. of surface is to be
disturbed
a) 5
b) 10
c) 6
d) 2
5. The Clean Water act regulates the discharge of pollutants into ____
a) ditches
b) navigable waters
c) ponds
d) all the above
6. The Fair Labor Standards Act applies to all employers who have ___ or more
employees
a) 1
b) 5
c) 10
d) 25
7. Which of the following is the most accurate estimating method__
a) conceptual
b) square foot
c) cubic foot
d) take off
8. An employee earns $15.00 per hour. If he/she physically works 40 hours in
one week plus gets 8 hours of vacation time. What will be the gross pay.
a) $780
b) $720
c) $1080
d) $480
9. When a contract includes an “allowance” and the work for the allowance is
less than anticipated,__________
a) the contractor must pass on the savings to the owner
b) the contractor keeps the savings
c) the contractor has materially breached the contract
d) the contract is null and void
10. The maximum time duration an employee may be subjected to 97 decibels
without hearing protection is ______
a) 8 hours
b) 4 hours
c) 3 hours
d) 1/2 hour
ABC Company- current assets $154,000, current liabilities $24,300, long
term liabilities $102,000, Cash on hand $14,000, Net worth $64,000
11. Using the information supplied, what is the company’s debt to equity ratio
a) 1.97
b) 2.4
c) 2.62
d) .51
12. A type of business that is taxed on its earnings and then taxed again when
the shareholder report their earnings, is called a/an___
a) partnership
b) S corporation
c) Corporation
d) Limited liability company
13. A willful violation of OSHA regulations carries a fine of _______
a) $100 – $7000
b) up to $4000
c) $5,000 – $70,000
d) $250,000 – $500,000
14. When federal payroll taxes are paid 20 days late the penalty is ____percent
of the amount due
a) 2
b) 5
c) 10
d) 15
15. ABC Heating has estimated a job to cost $5800. Its company overhead is 26% and it wishes to make a profit of 25%. What should be the bid price of the
job?
a) $11,836
b) $8,758
c) $7,333
d) $10,643
ANSWERS ANSWERS

 

 

         “So easy, your dog would pass.”

8. An employee earns $15.00 per hour. If he/she physically works 40 hours in
one week plus gets 8 hours of vacation time. What will be the gross pay.
a) $780
b) $720
c) $1080
d) $480
9. When a contract includes an “allowance” and the work for the allowance is
less than anticipated,__________
a) the contractor must pass on the savings to the owner
b) the contractor keeps the savings
c) the contractor has materially breached the contract
d) the contract is null and void
10. The maximum time duration an employee may be subjected to 97 decibels
without hearing protection is ______
a) 8 hours
b) 4 hours
c) 3 hours
d) 1/2 hour
ABC Company- current assets $154,000, current liabilities $24,300, long
term liabilities $102,000, Cash on hand $14,000, Net worth $64,000
11. Using the information supplied, what is the company’s debt to equity ratio
a) 1.97
b) 2.4
c) 2.62
d) .51
12. A type of business that is taxed on its earnings and then taxed again when
the shareholder report their earnings, is called a/an___
a) partnership
b) S corporation
c) Corporation
d) Limited liability company
13. A willful violation of OSHA regulations carries a fine of _______
a) $100 – $7000
b) up to $4000
c) $5,000 – $70,000
d) $250,000 – $500,000
14. When federal payroll taxes are paid 20 days late the penalty is ____percent
of the amount due
a) 2
b) 5
c) 10
d) 15
15. ABC Heating has estimated a job to cost $5800. Its company overhead is 26% and it wishes to make a profit of 25%. What should be the bid price of the
job?
a) $11,836
b) $8,758
c) $7,333
d) $10,643


ANSWERS ANSWERS

1. b
2. a
3. d
4. d
5. b
6. a
7. d
8. b
9. a
10.c
11.a
12.c
13.c
14.c
15.a

Energy Marketing Service

Serving the Plumbing and HVAC industry since 1986

energymarksringservice@gmail.com   phone 252-943-1028

Thank you for taking our practice exam.

If you feel you need more help,

please consider ordering our prep course

Only $49

This valuable course will be downloaded to your computer immediately upon your purchase; it is yours to print out, study and learn as long as you wish. There is no expiration date. Plus, if you should fail your exam within 8 weeks of your purchase, you may receive a 100% refund by simply emailing a refund request to: energymarketingservice@gmail.com.

Guarantee

ONLY $49

                                                              “So easy, a dog could pass” 

Your Payment will be safely processed by Clickbank

ClickBank is the retailer of products on this site. CLICKBANK® is a registered trademark of Click Sales, Inc., a Delaware corporation located at 1444 S. Entertainment Ave., Suite 410 Boise, ID 83709, USA and used by permission. ClickBank’s role as retailer does not constitute an endorsement, approval or review of these products or any claim, statement or opinion used in promotion of these products.

Answer to the sales price question at top of page; c. $1428.57

Most readers (99%) would say, “Well, this is simple, just multiply $1000 x .30,then, add the answer to $1000 or simply multiply $1000 x 130%. Either way, the sales price will be $1300”. WRONG! Don’t believe me? OK, give me a 25% discount. After all, you’re still making 5%. Try it and see what happens. If your math is correct you will be selling the job for about $975, which means you’re going to lose about $25 instead of making $50 you expected.

Why? Because the sales price was figured as a percentage of cost ($1,000), not sales.

*financial percentages used in business are percentages of sales not cost.

The correct method

The following is the correct method for figuring a sales price. We are not going to go into the where and why, just remember this for the exam.

Always start off with 100%

Then, deduct the percent you need to cover overhead and profit (30%) This leaves 70% (100% – 30% = 70%)

Next, divide the cost ($1000) by 70%

Simply stated: Selling price = Cost/100% minus desired % profit 

1000/.70 = $1428.57 sales price

What is sales price of the following?

      $1500 cost, 25% profit> sell at $2000 (1500/.75)

      $768 cost, 35% profit > sell at $1181.53  (768/.65)

                         

This valuable course will be downloaded to your computer immediately upon your purchase; it is yours to print out, study and learn as long as you wish. There is no expiration date. Plus, if you should fail your exam within 8 weeks of your purchase, you may receive a 100% refund by simply emailing a refund request to: 

energymarketingservice@gmail.com.