5. In connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the mixing plant equipment. The contractor estimates that it will cost P51.75 per cubic meter per kilometer to haul the asphalt paving material from the mixing plant to the job site. If site B is selected, there will be an added charge of P600 per day for a flagman and it needs 2 flagman. The job requires 50,000 cubic meters of mixed asphalt paving material. It is estimated that four months (17 weeks of five working days per week) will be required for the job Cost Factors Site A Site B 4.3 km Average hauling distance 6 km Monthly rental of site P45,000 P225,000 Cost to setup and remove equipment P675,000 Hauling expense P51.75 / Cu.m/km P1,125,000 P51.75 / Cu.m/km

5. In connection with surfacing a new highway, a contractor has a choice of two sites on which to set up the mixing plant equipment. The contractor estimates that it will cost P51.75 per cubic meter per kilometer to haul the asphalt paving material from the mixing plant to the job site. If site B is selected, there will be an added charge of P600 per day for a flagman and it needs 2 flagman. The job requires 50,000 cubic meters of mixed asphalt paving material. It is estimated that four months (17 weeks of five working days per week) will be required for the job Cost Factors Site A Site B 4.3 km Average hauling distance 6 km Monthly rental of site P45,000 P225,000 Cost to setup and remove equipment P675,000 Hauling expense P51.75 / Cu.m/km P1,125,000 P51.75 / Cu.m/km

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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