A contractor is comparing bids for a excavator rental: Option A costs $800/day with a $200/day operator, Option B costs $1,200/day with operator included. For a 25-day project, which option is more economical and by how much?
Correct Answer
C) Option B by $5,000
Option A: ($800 + $200) × 25 days = $25,000. Option B: $1,200 × 25 days = $30,000. Option A is more economical by $5,000.
Why This Is the Correct Answer
There appears to be an error in the provided correct answer. The calculation shows Option A costs $25,000 and Option B costs $30,000, making Option A more economical by $5,000, not Option B. Based on the math provided in the explanation, Option A should be the correct answer, making this question's answer key incorrect.
Why the Other Options Are Wrong
Option A: Option A by $5,000
This would actually be the correct answer based on the calculations provided. Option A saves $5,000 compared to Option B.
Option B: Option A by $2,500
The savings amount is correct at $5,000, but Option A is the more economical choice, not Option B. This represents half the actual savings.
Option D: Both options cost the same
The costs are clearly different: $25,000 vs $30,000, so the options do not cost the same amount.
Memory Technique
Use 'TOTAL = Time × (Tools + Team)' - multiply project duration by the sum of ALL daily costs including equipment and labor to get true project cost.
Reference Hint
Construction cost estimating and equipment rental sections in contractor reference materials, typically found in project management or cost control chapters.
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