a. If he allows the present working force to work overtime for 2 hours a day, in how many days will he finish the work. How much are the savings or the loss? b. If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled in order to finish the work on time, how many workers will he add? No overtime work in this case. c. Should the contractor allow overtime work for two hours a day, how many men will he add in order to finish the work on time? How much will he save or loss?
a. If he allows the present working force to work overtime for 2 hours a day, in how many days will he finish the work. How much are the savings or the loss? b. If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled in order to finish the work on time, how many workers will he add? No overtime work in this case. c. Should the contractor allow overtime work for two hours a day, how many men will he add in order to finish the work on time? How much will he save or loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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SOLVE THE A B C
Transcribed Image Text:A building contractor is faced with the problems of possibly paying liquidated damages of $20,000.00
per day for the delay in the completion of work in accordance with the contract.
The facts are as follows
a. number of days left in the contract time is 30 days
b. at present the working force are;
40 skilled workers with a daily wage of $700.00/day/worker
20 unskilled workers with a daily wage of P520.00/day/worker
This is on an 8-hr day work. If he maintains the present number of men, he will finish the work in 50
days; overtime rate is 25% more than regular rate.
Analyse/Answer the following cases:
a. If he allows the present working force to work overtime for 2 hours a day, in how many days will he finish
the work. How much are the savings or the loss?
b. If the contractor puts additional men maintaining the ratio of two skilled workers to one unskilled in order
to finish the work on time, how many workers will he add? No overtime work in this case.
c. Should the contractor allow overtime work for two hours a day, how many men will he add in order to
finish the work on time? How much will he save or loss?
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