Homework Help is Here – Start Your Trial Now!
Business
Operations Management
a. II all other costs are assumed equal, what is the total cost for each machine for 6,000 holes, assuming that the total cost of each machine is charged to these holes? b. For how many holes will the costs be equal?

a. II all other costs are assumed equal, what is the total cost for each machine for 6,000 holes, assuming that the total cost of each machine is charged to these holes? b. For how many holes will the costs be equal?

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
2. The making of rivet holes in structural steel members can be done by two methods. The first method consists of laying out the position of the holes in the members and using a drill press costing Php 30,000. The machinist is paid Php 20 per hour and he can drill 30 holes per hour. The second method makes use of a multiple-punch machine costing Php 27,500. The punch operator is paid Php 18 an hour and he can punch out 4 holes every minute. This method also requires an expense of Php 0.70 per hole to set the machine. a. If all other costs are assumed equal, what is the total cost for each machine for 6,000 holes, assuming that the total cost of each machine is charged to these holes? b. For how many holes will the costs be equal?
Transcribed Image Text:2. The making of rivet holes in structural steel members can be done by two methods. The first method consists of laying out the position of the holes in the members and using a drill press costing Php 30,000. The machinist is paid Php 20 per hour and he can drill 30 holes per hour. The second method makes use of a multiple-punch machine costing Php 27,500. The punch operator is paid Php 18 an hour and he can punch out 4 holes every minute. This method also requires an expense of Php 0.70 per hole to set the machine. a. If all other costs are assumed equal, what is the total cost for each machine for 6,000 holes, assuming that the total cost of each machine is charged to these holes? b. For how many holes will the costs be equal?
Expert Solution
steps

Step by step

Solved in 5 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS