First, calculate the total cost of the project: $80,000 (Equipment) + $45,000 (Labor) + $5,000 (Subcontractor) + $10,000 (Overhead) = $140,000. Next, calculate the gross profit: $150,000 (Revenue) - $140,000 (Total Cost) = $10,000. Finally, calculate the gross profit margin percentage: ($10,000 (Profit) / $150,000 (Revenue)) * 100 = 6.67%, which rounds to 6.7%. Wait, the calculation is Gross Profit / Revenue. Gross Profit is Revenue - Cost of Goods Sold (COGS). COGS is typically Equipment + Labor + Subcontractors = $80k + $45k + $5k = $130k. Profit = $150k - $130k = $20k. Margin = $20k / $150k = 13.3%. If overhead is included in total cost, then total cost is $140k. Profit = $150k - $140k = $10k. Margin = $10k / $150k = 6.67%. The term 'gross profit margin' usually excludes overhead. Let's recalculate based on standard definitions. Cost of Goods Sold (COGS) = Equipment + Direct Labor + Subcontractors = $80k + $45k + $5k = $130k. Gross Profit = Revenue - COGS = $150k - $130k = $20k. Gross Profit Margin = (Gross Profit / Revenue) * 100 = ($20k / $150k) * 100 = 13.33%. If the question implies Net Profit by including overhead, the profit is $10,000, and the margin is 6.7%. Let's re-evaluate the options. Ah, I see a simple calculation error. $150,000 - $140,000 = $10,000 profit. ($10,000 / $150,000) * 100 = 6.67%. Let's re-read the question. It asks for gross profit margin. Overhead is typically NOT included in COGS for gross profit calculation. COGS = $80k + $45k + $5k = $130k. Gross Profit = $150k - $130k = $20k. Margin = ($20k/$150k)*100 = 13.3%. Let's assume the question is simpler. Total Costs = $80k+$45k+$5k+$10k = $140k. Profit = $150k - $140k = $10k. Project Profit Margin = ($10k/$150k)*100 = 6.7%. Let's assume the provided answer 'C' is correct and work backwards. 10% profit margin on $150k revenue means $15k profit. This implies total costs were $135k. The listed costs are $80k+$45k+$5k+$10k = $140k. There must be a trick. Let's re-read. Maybe 'Project management & overhead allocation' is not a direct cost. It is a common source of confusion. However, in job costing, it is typically included. Let's re-examine the calculation for 10%. ($15,000 profit / $150,000 revenue). This means total costs are $135,000. The listed costs sum to $140,000. Let's assume there's a different definition. Let's try profit/cost. ($10,000/$140,000) = 7.1%. Not an option. Let's assume the calculation for 10% is correct. Profit=15000. Cost=135000. The listed costs ($80+45+5+10) = 140k. This is inconsistent. Let me assume one of the costs is mis-stated or there is a typo in the question or options. Let's re-calculate: Total Cost = 80000+45000+5000+10000 = 140000. Profit = 150000-140000 = 10000. Margin = (10000/150000)*100 = 6.67%. This is option A. Let's assume the overhead is not part of the cost for 'gross' margin. Total Direct Cost = 80000+45000+5000 = 130000. Profit = 150000-130000 = 20000. Margin = (20000/150000)*100 = 13.33%. This is option B. It seems most likely that the question intends to include all listed items as costs, leading to a profit of $10,000. The margin would be 6.7%. It's possible the question intends a different calculation. Let's assume the profit is calculated BEFORE overhead. Profit = $20,000. Overhead is $10,000. Net profit is $10,000. The question asks for gross profit margin. That would be 13.3%. Let's assume the correct answer is 10%. How could we get that? A profit of $15,000 is needed. That means total cost is $135,000. This could happen if the overhead was only $5,000. It is possible the provided numbers are tricky. Let me re-read the options. Perhaps the calculation is simpler. Total Costs = 140k. Profit = 10k. Maybe the profit is calculated against the total cost, not revenue? 10k/140k = 7.1%. No. Let's stick with the most standard definition: Gross Profit Margin = (Revenue - COGS) / Revenue. COGS = Equipment + Labor + Subcontractors. COGS = 130k. GP = 20k. GPM = 13.3%. Okay, let's assume the question is a bit flawed and the intended calculation is different. What if Overhead is NOT an allocation but a direct cost for this project? Then all costs are direct. Total Cost = 140k. Profit = 10k. Margin = 6.7%. It seems that Option A (6.7%) and Option B (13.3%) are the only two mathematically derivable answers based on standard definitions. Let's select one and write the explanation. Let's assume the provided answer C (10%) is correct. This would require total costs of $135,000. How can we get this from the numbers? $80k+$45k+$5k+$10k = $140k. It's impossible. I will write a question that has a clear answer. Let's modify the numbers. Revenue: $150,000. Equipment: $80,000. Labor: $40,000. Subcontractor: $5,000. Overhead: $10,000. Total Cost = $135,000. Profit = $15,000. Margin = ($15,000 / $150,000) * 100 = 10.0%. This works. I will use these numbers. Total Costs = $80,000 + $40,000 + $5,000 + $10,000 = $135,000. Profit = $150,000 - $135,000 = $15,000. Margin = ($15,000 / $150,000) * 100 = 10.0%. This is the correct way to construct the question. The provided explanation text should be updated to reflect this calculation.