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A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid P120.00 a day, 25 at P180.00 a day, and 5 at P250.00 a day. For each day beyond the original 100 days, the contractor has to pay P500.00 liquidated damages. (50 points) a. How many more men should the contractor add so that he can complete the work on time? b. If of the additional men, 2 are paid P180.00 a day, and the rest at P120.00 a day, would the contractor save money by employing more men and not paying the fine and by how much?

A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid P120.00 a day, 25 at P180.00 a day, and 5 at P250.00 a day. For each day beyond the original 100 days, the contractor has to pay P500.00 liquidated damages. (50 points) a. How many more men should the contractor add so that he can complete the work on time? b. If of the additional men, 2 are paid P180.00 a day, and the rest at P120.00 a day, would the contractor save money by employing more men and not paying the fine and by how much?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid P120.00 a day, 25 at P180.00 a day, and 5 at P250.00 a day. For each day beyond the original 100 days, the contractor has to pay P500.00 liquidated damages. (50 points) a. How many more men should the contractor add so that he can complete the work on time? b. If of the additional men, 2 are paid P180.00 a day, and the rest at P120.00 a day, would the contractor save money by employing more men and not paying the fine and by how much?
Transcribed Image Text:A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid P120.00 a day, 25 at P180.00 a day, and 5 at P250.00 a day. For each day beyond the original 100 days, the contractor has to pay P500.00 liquidated damages. (50 points) a. How many more men should the contractor add so that he can complete the work on time? b. If of the additional men, 2 are paid P180.00 a day, and the rest at P120.00 a day, would the contractor save money by employing more men and not paying the fine and by how much?
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