A building contractor is faced with the problem of possibly paying liquidation damages of PhP 2,000.00 per day for the delay in the completion of his work in accordance with a contract. The facts are as follows: (a) Number of days left on the contract time = 30 days (b) At present the working force is: 40 skilled workers with daily wage of PhP 40.00 each 20 unskilled workers with daily wage of PhP 20.00 each (c) The daily wage is based on an 8-hour day's work (d) If he maintains the present number of men he will finish the work in 50 days (e) Overtime rate is 25% more than regular rate. Analyze the following cases: Case 1: If he allows the present working force to work overtime of 2 hours a day, in how many days will he finish the work? How much are his savings or loss? Case II: If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled worker in order to finish the work on time, how many will he add in order to finish the work on time, how many will he add? Consider no overtime work. Case III: Should the contractor allow overtime work of two hours a day, how many men will he add in order to finish the work on time? How much will he save or loss?
A building contractor is faced with the problem of possibly paying liquidation damages of PhP 2,000.00 per day for the delay in the completion of his work in accordance with a contract. The facts are as follows: (a) Number of days left on the contract time = 30 days (b) At present the working force is: 40 skilled workers with daily wage of PhP 40.00 each 20 unskilled workers with daily wage of PhP 20.00 each (c) The daily wage is based on an 8-hour day's work (d) If he maintains the present number of men he will finish the work in 50 days (e) Overtime rate is 25% more than regular rate. Analyze the following cases: Case 1: If he allows the present working force to work overtime of 2 hours a day, in how many days will he finish the work? How much are his savings or loss? Case II: If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled worker in order to finish the work on time, how many will he add in order to finish the work on time, how many will he add? Consider no overtime work. Case III: Should the contractor allow overtime work of two hours a day, how many men will he add in order to finish the work on time? How much will he save or loss?
Chapter1: Making Economics Decisions
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Transcribed Image Text:A building contractor is faced with the problem of possibly paying liquidation damages of PhP 2,000.00
per day for the delay in the completion of his work in accordance with a contract. The facts are as follows:
(a) Number of days left on the contract time = 30 days
(b) At present the working force is:
40 skilled workers with daily wage of PhP 40.00 each
20 unskilled workers with daily wage of PhP 20.00 each
(c) The daily wage is based on an 8-hour day's work
(d) If he maintains the present number of men he will finish the work in 50 days
(e) Overtime rate is 25% more than regular rate.
Analyze the following cases:
Case 1: If he allows the present working force to work overtime of 2 hours a day, in how many days will
he finish the work? How much are his savings or loss?
Case II: If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled
worker in order to finish the work on time, how many will he add in order to finish the work on time, how
many will he add? Consider no overtime work.
Case III: Should the contractor allow overtime work of two hours a day, how many men will he add in
order to finish the work on time? How much will he save or loss?
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