Question

With 10,000 per day who would be the apparent low bidder; Bidder A was $500,000 and estimated completion date of 200 days. Bidder B was $540,000 and a completion day and estimated completion date of 180.

1. Bidder B
2. Bidder A

Answer 1

Bidder B is the lower bidder. the option (A) is correct

Step-by-step explanation:

Solution

Given that:

Bidder A = $500,000

The estimate completion time = 200 days

Bidder B = $540,000

The estimate completion time =180 days

Overhead charges = $10,000/day

Now,

The Total Bid of A (including overhead charges) = 500,000 + 200 * 10000

= 500,000 +2000000

=$2,500,000

The Total Bid for B (Including overhead charges) = 540,000 + 180 * 10000

=540,000 +1,800,000

=$2340000

Hence Bidder B is apparently a low bidder, since the Total Bid of B is lower than the Total Bid of A.