A cement grinding mill "A" with the capacity of 50 tons per hour utilizes forged steel grinding balls costing P12,000 per ton, which have a wear rate of 100grams per ton cement milled. Another cement mill "B" of same capacity uses high chrome steel grinding balls costing P30,000 per ton with wear rate of 10grams per ton cement milled. Determine by calculation the more economical grinding mill, considering other factors to be the same and how much is the difference incurred in losses.

A cement grinding mill "A" with the capacity of 50 tons per hour utilizes forged steel grinding balls costing P12,000 per ton, which have a wear rate of 100grams per ton cement milled. Another cement mill "B" of same capacity uses high chrome steel grinding balls costing P30,000 per ton with wear rate of 10grams per ton cement milled. Determine by calculation the more economical grinding mill, considering other factors to be the same and how much is the difference incurred in losses.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6. A cement grinding mill "A" with the capacity of 50 tons per hour utilizes
forged steel grinding balls costing P12,000 per ton, which have a wear
rate of 100grams per ton cement milled. Another cement mill "B" of
same capacity uses high chrome steel grinding balls costing P30,000
per ton with wear rate of 10grams per ton cement milled. Determine by
calculation the more economical grinding mill, considering other factors
to be the same and how much is the difference incurred in losses.

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