A young mechanical engineer devised two different approaches to completing a production task. Both methods entail the purchase of the same working space as well as other capital equipment that will only be employed for this operation. A crew of three guys costing P30.00 per hour is required for Method A. This approach will produce 10 units per hour, two of which will be rejects. Method B requires a workforce of two workers, each of whom costs P35.00 per hour, to produce eight units per hour, one of which will be rejected. Each reject costs P20.00 because direct material is lost. If a certain total number of units is to be produced, find which method is economical. DO NOT USE EXCEL, SOLVE USING FORMULA
A young mechanical engineer devised two different approaches to completing a production task. Both methods entail the purchase of the same working space as well as other capital equipment that will only be employed for this operation. A crew of three guys costing P30.00 per hour is required for Method A. This approach will produce 10 units per hour, two of which will be rejects. Method B requires a workforce of two workers, each of whom costs P35.00 per hour, to produce eight units per hour, one of which will be rejected. Each reject costs P20.00 because direct material is lost. If a certain total number of units is to be produced, find which method is economical. DO NOT USE EXCEL, SOLVE USING FORMULA
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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Question
A young mechanical engineer devised two different approaches to completing a
production task. Both methods entail the purchase of the same working space as well as
other capital equipment that will only be employed for this operation.
A crew of three guys costing P30.00 per hour is required for Method A. This approach
will produce 10 units per hour, two of which will be rejects. Method B requires a
workforce of two workers, each of whom costs P35.00 per hour, to produce eight units
per hour, one of which will be rejected. Each reject costs P20.00 because direct material
is lost. If a certain total number of units is to be produced, find which method is
economical.
DO NOT USE EXCEL, SOLVE USING FORMULA
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