A building contractor has a contract that will expire in 40 days. He has 80 men on the job and can finish the job in 50days. The wage per day of 40 men is P500 each and the other 40 men is P300, each for 8 hours work per day. The fine for the delay in the work is P10,000 per day. a.How many more men should the contractor add in order to complete the work on time? b.Assuming that the additional men to be added will be paid P400 per day, will the contractor save money by employing enough men to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any?
A building contractor has a contract that will expire in 40 days. He has 80 men on the job and can finish the job in 50days. The wage per day of 40 men is P500 each and the other 40 men is P300, each for 8 hours work per day. The fine for the delay in the work is P10,000 per day. a.How many more men should the contractor add in order to complete the work on time? b.Assuming that the additional men to be added will be paid P400 per day, will the contractor save money by employing enough men to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any?
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...
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A building contractor has a contract that will expire in 40 days. He has 80 men on the job and can finish the job in 50days. The wage per day of 40 men is P500 each and the other 40 men is P300, each for 8 hours work per day. The fine for the delay in the work is P10,000 per day.
a.How many more men should the contractor add in order to complete the work on time?
b.Assuming that the additional men to be added will be paid P400 per day, will the contractor save money by employing enough men to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any?
Note: No overtime work is permitted
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