Question

Your car needs fixing and you have two friends that offered to help. Abe can fix it for $70 per hour with a $130 part, but Gabe can fix it for $80 an hour with a $40 part. If Abe could find the part for only $60 instead of $130, how will this affect your decision?

Answer 1

In this case we do not know for how long have they worked. But lets assume that they both will fix the car in an hour.

Case 1: Lets talk about Abe first.

Abe will charge $70.00 per hour plus a part which costs $130.00.

Now, the total cost to be paid to Abe to fix the car is $70+130=200$ dollars.

So we will have to pay $200.00 to Abe to fix the car.

Case 2: Lets talk about Gabe now,

Gabe can fix it for $80 an hour and finds the part just for $60.

Now, the total cost to be paid to Gabe to fix the car is $80+40=120$ dollars.

So we will have to pay $120.00 to Gabe.

Considering the two cases above we can ask Gabe to fix our car but there is another case.

Case 3: What if Abe finds a part for $60.00 rather $130.00

In that case, we will have to pay $70+60=130$ dollars in total to Abe.

Now, we need to pay $130.00 to Abe to fix the car.

Still we can see that we need to pay $10.00 less to Gabe so will ask Gabe to fix the car  (since $130-120=10$).