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They are wondering if you know how to install tiles.
Yes, when you lay it on a diagonal, there is more waste. Generally, with a straight lay, you need 6-10% waste. With diagonal, it's best to have at least 15% extra.
It is not too difficult to lay tiling down yourself if you follow some simple steps before even attempting the task. You want to make sure that you lay the tiles down on and use sanded grout.
That's at least two days labour for two guys ( to do it properly )
It is possible but I would not reccomend it. If possible remove the old tile before laying the new tile. If you want to avoid removing the old tile you can lay a cement board over the old tile before installing the new tile.