OH&P

horsegoer

Senior Member
Location
NJ
Occupation
Estimator
Do you guys mark up your cost WITH overhead included? So your cost is $50,000 plus $5k overhead. Do you apply your markup to $50k or to $55k?
 

sbirnbaum

Member
Location
NJ
Occupation
Estimator
Yes. Always Cost + overhead and Profit above the overhead. (But do not apply O&P to tax.)
Example (10% OH and 10% Profit). Cost is $100 + $8.75(tax)
Calculate as follows: $100 * 10%(oh) = $110 * 10%(pr) = $121 + $8.75(tax) = $129.75
 
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