John Is a Carpenter Who Specializes in Bathroom Renovations for Single-Owner

Multiple Choice

John is a carpenter who specializes in bathroom renovations for single-owner homes. He believes that he has been underbidding his projects and losing out on potential profit that could make all of the difference for his business's continued viability. He is putting together an estimate for a potential client and has determined the following activities:
Previously, John was billing at a flat rate of $6 per square foot with no additional markups. John would like to add a 25% markup to the cost to arrive at a final bid price that will be given to the customer. Using Activity-Based Costing (ABC) , what is the final bid price that will be presented to the customer?

A) $2,400.00
B) $2,554.04
C) $3,064.85
D) $3,192.55