CSLB C-27 Landscaping ContractorPlanning and EstimatingEasy
A C-27 contractor is estimating costs for a new commercial landscape project. The project requires 1,500 linear feet of irrigation piping. The supplier quotes the piping at $0.75 per linear foot, with a 5% discount if the total piping order exceeds $1,000. What is the total estimated cost for the irrigation piping, including the discount?
- A$1,064.06
- B$1,068.75
- C$1,125.00
- D$1,181.25
Show answer & explanationAnswer & explanation
Correct answer: B. $1,068.75
First calculate the base cost, then determine if the discount applies, and finally apply the discount. The base cost is $1,125, which exceeds $1,000, so the 5% discount applies, resulting in $1,068.75.
Why the other options are wrong
- A. This value is incorrect; it appears to be a miscalculation of the discount.
- C. This is the base cost without applying the eligible 5% discount.
- D. This value is incorrect; it seems to be a miscalculation or an addition instead of a discount.
Volume Discount Calculation
A volume discount is a reduction in price offered to buyers when they purchase a large quantity of goods. Contractors must accurately calculate these discounts to ensure competitive and profitable bids.
- Discounts are usually based on total quantity or total cost.
- Always verify if the order qualifies for the discount threshold.
- Apply the discount percentage to the subtotal before taxes.
Memory trick: Quantity Buys Big Savings! Check the threshold, then cut the cost.