# PCM Section 2 Quiz Item 9

**URL:** <https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752>\
**Category:** Practice Management\
**Created:** [November 28, 2022, 2:08pm UTC](https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752 "2022-11-28T14:08:44Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![marilou.denum](https://blackspectacles.com/uploads/images/5.png) [@marilou.denum](https://community.blackspectacles.com/u/marilou.denum)\
**Post date:** [November 28, 2022, 2:08pm UTC](https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752/1 "2022-11-28T14:08:44Z")

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It would be nice if there’s a discussion inside the quiz itself since I am not allowed to upload a screenshot here.

I have a question on PCM Section 2 Item 9 regarding the revised total cost. I don’t understand why there’s 1.05% overhead and profit when it’s originally 5% overhead and profit. Same thing with the contingency (it’s 3% per the exhibit) and then it changed to 1.03 on the calculations.

Can you please explain? Thank you.

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**Author:** ![coachchrishopstock](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.blackspectacles.com/coachchrishopstock/32/1662_2.png) [@coachchrishopstock](https://community.blackspectacles.com/u/coachchrishopstock)\
**Post date:** [November 28, 2022, 6:06pm UTC](https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752/2 "2022-11-28T18:06:20Z")

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Hi @marilou.denum - if we need to add 5% to a number, a quick way to do that is multiplying the number by 1.05. You could multiply by 0.05, but then you’d need to perform an additional step of adding that number to the original number. I’d recommend getting comfortable with that way of doing the math, because it’s a time saver on the ARE!

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**Author:** ![marilou.denum](https://blackspectacles.com/uploads/images/5.png) [@marilou.denum](https://community.blackspectacles.com/u/marilou.denum)\
**Post date:** [November 29, 2022, 3:49am UTC](https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752/3 "2022-11-29T03:49:07Z")

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Hi Chris,

Got it. By the way, thanks for your response.

Marilou

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**Author:** ![marilou.denum](https://blackspectacles.com/uploads/images/5.png) [@marilou.denum](https://community.blackspectacles.com/u/marilou.denum)\
**Post date:** [November 29, 2022, 3:55am UTC](https://community.blackspectacles.com/t/pcm-section-2-quiz-item-9/4752/4 "2022-11-29T03:55:19Z")

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Hi Chris,

This is a good tip and you’re right.

Thank you,  
Marilou