Utah Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

To find the percentage of total sales that Frank's overhead represents, you need to divide the overhead expenses by the total sales and then multiply by 100 to convert it into a percentage.

In this case, the overhead expenses are $2,500 and the total sales are $10,000. The calculation would look like this:

1. Divide the overhead by total sales: $2,500 ÷ $10,000 = 0.25.

2. Convert this to a percentage by multiplying by 100: 0.25 × 100 = 25%.

Therefore, Frank's overhead represents 25% of total sales, which confirms that the correct option is the one indicating 25%. Understanding this calculation is essential for contractors as it helps in planning budgets and pricing strategies.