Homework Help is Here – Start Your Trial Now!
Business
Operations Management
2. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units. Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs 110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a tool costing 640Php, which will be useless after the 8,000 units are finished. The cost of the machine operator is 10.80Php/hr. if all other costs are identical, which material is more economical?

2. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units. Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs 110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a tool costing 640Php, which will be useless after the 8,000 units are finished. The cost of the machine operator is 10.80Php/hr. if all other costs are identical, which material is more economical?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
See similar textbooks
icon
Related questions
Question

2. A machine part can be exhausted either from aluminum or steel. There is an order of 8,000 units.
Steel costs 3.80Php/kg, while aluminum cost 8.70Php/kg. If steel is used, the steel per unit weighs
110g and 30g for aluminum. In production, steel is 50 units/hr and 80units/hr with an aid of a tool
costing 640Php, which will be useless after the 8,000 units are finished. The cost of the machine
operator is 10.80Php/hr. if all other costs are identical, which material is more economical?
a. Aluminum, by 1,264Php cost difference.
b. Aluminum, by 1,653Php cost difference
c. Steel, by 640Php cost difference.
d. Steel, by 1,088Php cost difference.
e. None of the above

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS