Question

The direct and indirect costs estimated by a contractor for bidding a project are ₹160000 and ₹20000 respectively. If the mark-up applied is 10% of the bid price, the quoted price (in ₹) of the contractor is:

• A. 200000
• B. 198000
• C. 196000
• D. 182000

Hint:

The quoted price is calculated by adding the mark-up (a percentage of the bid price) to the total cost.

Answer 1

The Correct Option is A

The total cost is the sum of direct and indirect costs: \[ \text{Total cost} = 160000 + 20000 = 180000. \] The mark-up is 10% of the bid price, so let the bid price be \( x \). Then: \[ \text{Mark-up} = 0.1x. \] The quoted price is: \[ x = \text{Total cost} + \text{Mark-up} = 180000 + 0.1x. \] Solving for \( x \): \[ x - 0.1x = 180000 $\Rightarrow$ 0.9x = 180000 $\Rightarrow$ x = 200000. \] Final Answer: \[ \boxed{200000}. \]