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Carpenter Red Seal Exam Prep · Question

A contractor is evaluating two bids for supply and delivery of lumber for a framing project. Bid A offers 20% discount on material but charges a flat $500 delivery fee. Bid B offers a 15% discount but includes free delivery. The total material cost before any discounts or delivery charges is $15,000. Which bid provides the lower overall cost, and by how much?

For Bid A: Material cost = $15,000 x (1 - 0.20) = $12,000. Total cost = $12,000 + $500 = $12,500. For Bid B: Material cost = $15,000 x (1 - 0.15) = $12,750. Tot

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Question: A contractor is evaluating two bids for supply and delivery of lumber for a framing project. Bid A offers 20% discount on material but charges a flat $500 delivery fee. Bid B offers a 15% discount but includes free delivery. The total material cost before any discounts or delivery charges is $15,000. Which bid provides the lower overall cost, and by how much?

Answer options: ✅ Bid A is lower by $75.

  • Bid B is lower by $250.
  • Bid A is lower by $1,000.
  • Bid B is lower by $50.

Correct answer: Bid A is lower by $75.

Explanation: For Bid A: Material cost = $15,000 x (1 - 0.20) = $12,000. Total cost = $12,000 + $500 = $12,500. For Bid B: Material cost = $15,000 x (1 - 0.15) = $12,750. Total cost = $12,750 + $0 = $12,750. Therefore, Bid A is lower by $12,750 - $12,500 = $250. My math was incorrect in the initial check. Corrected, Bid A is $12,500 and Bid B is $12,750, so Bid A is lower by $250.

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