Mechanix is a machine shop and a paper manufacturing plant gave it a P100,000.00 budget to fabricate a machine part needed for their preventive maintenance program. There are two material options, steel, and alloy steel which have approximately the same weight per item which is 0.36 kg. Steel costs P60.50 per kg and alloy costs P 100 per kg. Two sets of lathe and milling machines will do the work with their corresponding operators and each has an operating rate cost of P88.67 per hour. Utilizing all available sets of machines, steel can be fabricated at a rate of 20 pieces per hr and alloy can be done 16 pieces per hr but needs a special tool with a cost of P2000.00 good for 220 pieces of finished alloy part. How much is the difference in terms of pcs of STEEL to that of ALLOY type can be manufactured by Mechanix, in pcs?

Mechanix is a machine shop and a paper manufacturing plant gave it a P100,000.00 budget to fabricate a machine part needed for their preventive maintenance program. There are two material options, steel, and alloy steel which have approximately the same weight per item which is 0.36 kg. Steel costs P60.50 per kg and alloy costs P 100 per kg. Two sets of lathe and milling machines will do the work with their corresponding operators and each has an operating rate cost of P88.67 per hour. Utilizing all available sets of machines, steel can be fabricated at a rate of 20 pieces per hr and alloy can be done 16 pieces per hr but needs a special tool with a cost of P2000.00 good for 220 pieces of finished alloy part. How much is the difference in terms of pcs of STEEL to that of ALLOY type can be manufactured by Mechanix, in pcs?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Pace Automation Corporation in Cookeville, Tennessee must choose the better cconomical alternative between the two listed below. If 1,000 units are required per year, which alternative is cconomically attractive? Assume that the life of the automated equipment is 5 years. O a Alternative A Skilled Operator at $25 per hour, 35 minutes per unit of skilled labor time is required. Unskilled operator at $12 per hour plus automated equipment costing $50,000; 10 minutes of operator time per unit is required. Ob. Alternative B QUESTION 9 The present worth of an amount of money "Y" that will be received 10 yea from now is $10,000. At an interest rate of 8% per year, the value of "Y" ten years from now is equal to: Oa $19,525 OD $16.756 OC$18,000 Od $21,589
A high pressure (1000 psi) stainless steel pump with a variable frequency drive is installed in a seawater reverse osmosis pilot plant that is recoveringwater from membrane concentrate at a rate of 4 gallons per minute (gpm). The cost of the pump was $13,000. Because of favorable results from thepilot study, the water utility wants to go with a fullscale system that will produce 500 gpm. Estimate the cost of the larger pump, if the exponent in the cost-capacity equation has a value of 0.37.
Company “A” has fixed expenses of P10000 per month and each unit of product has a variable cost of P0.02, while company “B” has fixed expenses of P2200 per month and can produce the same unit of product at 0.05 variable cost. At what number of units of annual production will company “A” have the same overall cost as company “B”?
ABC Corporation will be making a $100,000 payment and a collection of the same amount. The buying spot rate for a USD is P52.10 and the selling spot rate is P52.35. By matching the collection and the payment, ABC was able to make cost savings of how much?
Am. 101.
Determine the breakeven point in terms of number of units produced per month and draw its corresponding break-even chart using the following data:➢ Selling price/unit 600 PhP➢ Total monthly overhead expenses 428,000 PhP➢ Labor cost 115 PhP➢ Cost of Materials 76 PhP➢ Other variable 2.32 Php
A subsidiary of a major furniture company manufactures wooden pallets. The plant has the capacity to produce 300,000 pallets per year. Presently the plant is operating at 70% of capacity. The selling price of the pallets is $18.25 per pallet and the variable cost per pallet is $15.75. At zero output, the subsidiary plant’s annual fixed costs are $550,000. This amount remains constant for any production rate between zero and plant capacity. Solve, a. With the present 70% of capacity production, what is the expected annualprofit or loss for the subsidiary plant. b. What annual volume of sales (units) is required in order for the plant to break even? c. What would be the annual profit or loss if the plant were operating at 90% of capacity? d. If fixed costs could be reduced by 40%, what would be the new breakeven sales volume?
A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at labor cost of P1,813. The cost of materials for each unit is P2,527. The variable costs amount to P651 per unit, while fixed charges incurred per annum totals P69,428. If the portable threshers are sold at P7,865 per unit, how many units must be produced and sold per annum to break-even?
Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 25% are collected in the month of sale; 55% are collected in the first month after sale: and 20% are collected in the second month after sale. If sales for April, May, and June were $64,000, S84,000, and S74,000, respectively, what were the firm's budgeted collections for June? $18,500. S56,200. S64,700. S77,500. Some other amount.