Percentage logic problem

[ESTOBAN]

Hi all a basic question maybe the logic is escaping me any help appreciated.

A builder submits a total price for a job of £1,500,000 including overheads and a profit of 15%. The build suffers a 12% reduction in work needed. Assuming a profit of 6% and overheads of 9%, determine how much of the expected profit the contractor will lose due to the reduction in the quantity of measured work and why.

 

[HallsofIvy]

6% of £1,500,000 is £90,000.
A 12% reduction of £1,500,000 is 88% of £1,500,000 which is £1,320,000 and 6% of that is £79200.\
The contractor's profit goes from £90,000 to £79,200 a loss of £10,800.