A manufacturer has a contract to produce 2k units of a certain device. The device can be made by highly trained workmen working individually. The device can also be made by less-skilled workmen working together if they are given specialized equipment and proper supervision. The highly trained workmen are paid P100 per hour, & each can produce 1 unit every 4 hours on the average. The specialized equipment can be placed in operation at an original cost of P120k and it will be worthless at the end of 5k units are manufactured. With this equipment 4 men paid P50.00 each per hour & a foreman paid P150.00 per hour, can do the work. All the 5 men working together can finish 1 unit in 20 minutes. Determine the gain or loss if the specialized equipment is used
A manufacturer has a contract to produce 2k units of a certain device. The device can be made by highly trained workmen working individually.
The device can also be made by less-skilled workmen working together if they are given specialized equipment and proper supervision. The highly trained workmen are paid P100 per hour, & each can produce 1 unit every 4 hours on the average.
The specialized equipment can be placed in operation at an original cost of P120k and it will be worthless at the end of 5k units are manufactured. With this equipment 4 men paid P50.00 each per hour & a foreman paid P150.00 per hour, can do the work. All the 5 men working together can finish 1 unit in 20 minutes. Determine the gain or loss if the specialized equipment is used.
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