If direct costs are $37,000 with overhead at 12% and profit at 5%, what is the calculated selling price?

To find the calculated selling price, you need to consider both the overhead and profit margins applied to the direct costs.

Begin with the direct costs of $37,000. First, calculate the overhead. The overhead is a percentage of the direct costs; in this case, it's 12% of $37,000. This calculation is done as follows:

Overhead = Direct Costs × Overhead Percentage

Overhead = $37,000 × 0.12 = $4,440

Next, you add this overhead to the direct costs to find the total costs before applying profit:

Total Costs = Direct Costs + Overhead

Total Costs = $37,000 + $4,440 = $41,440

Now, profit is calculated as a percentage of the total costs. The profit margin is 5%, so you take the total costs of $41,440 and calculate the profit:

Profit = Total Costs × Profit Percentage

Profit = $41,440 × 0.05 = $2,072

Finally, to find the selling price, you add the profit to the total costs:

Selling Price = Total Costs + Profit

Selling Price = $41,440 + $2,072 = $43,512