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
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe308b120-b478-44ba-9f52-a1b7d8714a48%2F8870a64a-399e-4179-836e-dff0d4279e4c%2Fqihyamg_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Survey Of Economics](https://www.bartleby.com/isbn_cover_images/9781337111522/9781337111522_smallCoverImage.gif)
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning