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
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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
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