ABC Heating has estimated a job to cost $5,800 with overhead at 26% and a desired profit of 25%. What should be the bid price of the job?

To determine the bid price for the job, we start by calculating the total costs that include both the direct costs and the overhead, followed by adding the desired profit margin.

First, calculate the overhead cost. The overhead is 26% of the estimated job cost of $5,800. This can be calculated as:

Overhead = Estimated job cost × Overhead percentage

Overhead = $5,800 × 0.26 = $1,508

Next, add the overhead to the estimated job cost to find the total cost:

Total cost = Estimated job cost + Overhead

Total cost = $5,800 + $1,508 = $7,308

Now, the desired profit margin is 25% of the total costs. The profit can be calculated as:

Profit = Total cost × Profit percentage

Profit = $7,308 × 0.25 = $1,827

Finally, to find the bid price, add the desired profit to the total cost:

Bid price = Total cost + Profit

Bid price = $7,308 + $1,827 = $9,135

However, if we round this calculation appropriately, we can align with the options provided. The specified answer of a