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12.3 Given the following data with the direct costs for each activity as shown, calculate the ROR of the contractor. Assume that (a) the markup is 15%; (b) retainage is 5% on the first 50% of worth, and 0% thereafter; (c) payment requests are submitted at the end of each month, and payments are received one month later; and (d) the finance charge is 1% per month of the amount of the overdraft at the end of the month Timing and allocation $25,000 $65,000 $75,000 $15,000 5,000 $20,000 $200,000 Total direct costs $180,000 Indirect costs $5000/month 5,000 5,000 5,000 Total indirect costs $20,000 $30,000 $70,000 $80,000
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