A cement kiln with production capacity of 1200 tons per day (24 hours) of clinker has at its burning zone about 120 tons of magnetite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks. If locally produced bricks costs P37,000 per ton and have a life of 4 months, while certain imported bricks costing P42,000 per ton and have a life of 6 months, determine the more economical bricks and by how much per month.
A cement kiln with production capacity of 1200 tons per day (24 hours) of clinker has at its burning zone about 120 tons of magnetite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks. If locally produced bricks costs P37,000 per ton and have a life of 4 months, while certain imported bricks costing P42,000 per ton and have a life of 6 months, determine the more economical bricks and by how much per month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A cement kiln with production capacity of 1200 tons per day (24 hours) of clinker has at its burning zone about 120 tons of magnetite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks. If locally produced bricks costs P37,000 per ton and have a life of 4 months, while certain imported bricks costing P42,000 per ton and have a life of 6 months, determine the more economical bricks and by how much per month.
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