# PJM Section 1 Quiz, #2

**URL:** <https://community.blackspectacles.com/t/pjm-section-1-quiz-2/4348>\
**Category:** Project Management\
**Created:** [June 3, 2022, 2:56pm UTC](https://community.blackspectacles.com/t/pjm-section-1-quiz-2/4348 "2022-06-03T14:56:56Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![amelia.tayeh](https://blackspectacles.com/uploads/images/23.png) [@amelia.tayeh](https://community.blackspectacles.com/u/amelia.tayeh)\
**Post date:** [June 3, 2022, 2:56pm UTC](https://community.blackspectacles.com/t/pjm-section-1-quiz-2/4348/1 "2022-06-03T14:56:56Z")

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![PJM Section 1 Quiz](https://canada1.discourse-cdn.com/flex029/uploads/blackspectacles/original/2X/a/a56d4a5e0205f7c80bf9985743f582604e7df54b.png)

Please see the attached question from Section 1 Quiz.  
Can you please identify why the percentages are not of $138,000?

I did the problem like this:  
$2,300,000 x 6% = $138,000  
40% + 5% + 5% = 50%  
100%-50% = 50%  
50% of $138,000 = $69,000

If you take 40% of $138,000 = $82,800 and then 10% of the $82,800 = $74,520.  
Why are the percentages not added together and of the original project gross fee?

Thank you in advanced for your help.

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**Author:** ![coachrebeccasmith](https://yyz1.discourse-cdn.com/flex029/user_avatar/community.blackspectacles.com/coachrebeccasmith/32/1338_2.png) [@coachrebeccasmith](https://community.blackspectacles.com/u/coachrebeccasmith)\
**Post date:** [June 5, 2022, 2:13pm UTC](https://community.blackspectacles.com/t/pjm-section-1-quiz-2/4348/2 "2022-06-05T14:13:16Z")

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Hi @amelia.tayeh !

Thanks so much for your question! Both the contingency and the non-reimbursable expenses are based on the architect’s net service revenue. This is why we have to take out the 40% first for the consultant’s fees to get the net service revenue, and then take out 10% of the net service revenue to get to the labor costs. The consultants will include their own contingency and have their own non-reimbursable expenses separate from the architect that will be taken from their own net service revenue. I hope this helps! Thank you!

-Rebecca