In manufacturing a kerosene stove, it is necessary to make two half-inch holes in No.22 gage metal. If these are drilled with the help of a jig, each hole will require one minute. The jig will cost P40.00. The drill press operator receives P1.10 per hour. The holes could be made also on a punch press at the rate of 2 holes each 10 seconds. A die would be required at a cost of P80.00. The punch operator will receive P0.90 per hour. If 1,000 stoves are to be produced and the jig or die will have no scrap value, which method will you recommend?

Time used to make one hole by jig = 1 minute Time used to make one hole by die = 10 seconds One…

Answered: In manufacturing a kerosene stove, it…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In manufacturing a kerosene stove, it is necessary to make two half-inch holes in No.22 gage metal. If these are drilled with the help of a jig, each hole will require one minute. The jig will cost P40.00. The drill press operator receives P1.10 per hour.

The holes could be made also on a punch press at the rate of 2 holes each 10 seconds. A die would be required at a cost of P80.00. The punch operator will receive P0.90 per hour.

If 1,000 stoves are to be produced and the jig or die will have no scrap value, which method will you recommend?

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