If a construction job's hard cost is $14,000 and the overhead is $6,000, what would be the estimated cost after applying a 2.5% decrease in hard cost and a 4.5% decrease in overhead?

To determine the correct estimated cost after applying the decreases to both the hard cost and overhead, it's essential to calculate the new amounts for each category.

First, the hard costs are $14,000. A decrease of 2.5% means calculating 2.5% of $14,000:

[

\text{Decrease in Hard Cost} = 14,000 \times 0.025 = 350

]

Now, subtract this decrease from the original hard cost:

[

\text{New Hard Cost} = 14,000 - 350 = 13,650

]

Next, for the overhead costs of $6,000, we apply the 4.5% decrease:

[

\text{Decrease in Overhead} = 6,000 \times 0.045 = 270

]

Then subtract this from the original overhead:

[

\text{New Overhead} = 6,000 - 270 = 5,730

]

Now, to find the total estimated cost after applying both decreases, we add the new hard cost and new overhead together:

[

\text{Total Estimated Cost} = 13,650 + 5,730 =