A building contractor has a contract which will expire in 30 days. He has 80 men on the job and can finish the job in 50 days. The wage per day of 40 men is P6.00 each and that of the other men is P4.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work is P100.00 per day. How many more men should the contractor add in order to complete the work on time? Assuming that the additional men to be added will be paid P6.00 per day, will the contractor save money by employing enough men for him to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any? No overtime work is permitted
A building contractor has a contract which will expire in 30 days. He has 80 men on the job and can finish the job in 50 days. The wage per day of 40 men is P6.00 each and that of the other men is P4.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work is P100.00 per day. How many more men should the contractor add in order to complete the work on time? Assuming that the additional men to be added will be paid P6.00 per day, will the contractor save money by employing enough men for him to complete the work on time or by not adding more men and paying the fine? How much is the savings, if any? No overtime work is permitted
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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Question
A building contractor has a contract which will expire in 30 days. He
has 80 men on the job and can finish the job in 50 days. The wage per
day of 40 men is P6.00 each and that of the other men is P4.00 each
for 8 hours work per day. The fine or liquidated damages for delay in
the work is P100.00 per day. How many more men should the
contractor add in order to complete the work on time? Assuming that
the additional men to be added will be paid P6.00 per day, will the
contractor save money by employing enough men for him to complete
the work on time or by not adding more men and paying the fine?
How much is the savings, if any? No overtime work is permitted.
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