A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8000 units. Steel costs P3.80 per kg. while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams. When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and the operator is P10.80 per hour. How much is the cost per unit if aluminum is used?

A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8000 units. Steel costs P3.80 per kg. while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams. When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and the operator is P10.80 per hour. How much is the cost per unit if aluminum is used?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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