A cost plus contract calls for the contractor to receive direct costs for labor and materials, with a markup of 20% of direct costs, plus additional bonuses. What is the total amount due the contractor when final costs for direct labor and materials amount to $60,000 and the project is completed 3 days early?

In a cost plus contract, the contractor is compensated for direct costs incurred during the project, both for labor and materials, along with an additional markup and potentially bonuses for performance metrics, such as completing the project ahead of schedule.

In this scenario, the direct costs for labor and materials amount to $60,000. The contractor is entitled to a markup of 20% on these direct costs. To calculate the markup, you take 20% of $60,000, which is $12,000.

Now, to find the total amount due to the contractor, you would add the direct costs to the markup.

Total amount due = Direct costs + Markup

Total amount due = $60,000 + $12,000 = $72,000.

Since the project was completed 3 days early, there may be additional bonuses provided. However, the question does not specify the size of the bonus or whether it would change the calculated amount significantly. Assuming the bonuses do not bring the amount below $75,001, the likely total amount would still fall within the range of $75,001 to $80,000, thus aligning with the option stated in C.

This calculation illustrates why this range is the most reasonable and just