A building contractor has a contract which 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. 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

A building contractor has a contract which 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. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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