A paint manufacturing company uses a sand mill for fine grinding of paint witn an output of 100 liters per hour using glass beads as grinding media. Media load in the mill is 25 kg costing ₱200.00 per kg and is fully replenished in 2 months time at 8 hours per day operation, 25 days a month. A ceramic grinding media is offered to this paint company, costing ₱400 per kg and needs 30 kg load in the sand mill, but guarantees an output of 120 liters per hour and full replenishment of media in 3 months. If profit on paint production is ₱15 per literl which media is more profitable and how much is the difference in profit
A paint manufacturing company uses a sand mill for fine grinding of paint witn an output of 100 liters per hour using glass beads as grinding media. Media load in the mill is 25 kg costing ₱200.00 per kg and is fully replenished in 2 months time at 8 hours per day operation, 25 days a month. A ceramic grinding media is offered to this paint company, costing ₱400 per kg and needs 30 kg load in the sand mill, but guarantees an output of 120 liters per hour and full replenishment of media in 3 months. If profit on paint production is ₱15 per literl which media is more profitable and how much is the difference in profit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A paint manufacturing company uses a sand mill for fine grinding of paint witn an output of 100 liters per hour using glass beads as grinding media. Media load in the mill is 25 kg costing ₱200.00 per kg and is fully replenished in 2 months time at 8 hours per day operation, 25 days a month. A ceramic grinding media is offered to this paint company, costing ₱400 per kg and needs 30 kg load in the sand mill, but guarantees an output of 120 liters per hour and full replenishment of media in 3 months. If profit on paint production is ₱15 per literl which media is more profitable and how much is the difference in profit?
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