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A gold mining area in Lanao contains on average, 1 ounce of gold per ton. Two methods of processing are available; method A costs ₱1.5 M per ton and recovers 90% of gold; method B cost ₱1.3M per ton and recovers 80% of the gold. If gold can be sold for ₱2.4M per ounce, which method is better and by how much

A gold mining area in Lanao contains on average, 1 ounce of gold per ton. Two methods of processing are available; method A costs ₱1.5 M per ton and recovers 90% of gold; method B cost ₱1.3M per ton and recovers 80% of the gold. If gold can be sold for ₱2.4M per ounce, which method is better and by how much

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A gold mining area in Lanao contains on average, 1 ounce of gold per ton. Two methods of processing are available; method A costs ₱1.5 M per ton and recovers 90% of gold; method B cost ₱1.3M per ton and recovers 80% of the gold. If gold can be sold for ₱2.4M per ounce, which method is better and by how much?

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