-SELECTION IN PRESENT ECONOMY PROBLEMS Problem 1 A contractor has a construction company that is currently handling a 2- storey residential building construction that should be completed 150 days. At present the said contractor has 100 men on the job and it is estimated that they will finish the work in 216 days. If of the 100 men, 60 are paid Php 300 a day, 30 are paid Php 350 a day and 10 are paid Php 550 a day and if for each day beyond the original 100 days, the contractor has to pay Php 1,800 liquidated damages. How many total men should the contractor have to complete the work on time and without paying any liquidated damages? If the additional men of 10 are paid Php 550 a day and the rest are paid Php 300 a day, would the contractor save money by employing more men and not paying the fine?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 3E
Question
-SELECTION IN PRESENT ECONOMY PROBLEMS
Problem 1
A contractor has a construction company that is currently handling a 2-
storey residential building construction that should be completed 150 days. At
present the said contractor has 100 men on the job and it is estimated that they
will finish the work in 216 days. If of the 100 men, 60 are paid Php 300 a day, 30 are
paid Php 350 a day and 10 are paid Php 550 a day and if for each day beyond
the original 100 days, the contractor has to pay Php 1,800 liquidated damages.
How many total men should the contractor have to complete the work on time
and without paying any liquidated damages? If the additional men of 10 are paid
Php 550 a day and the rest are paid Php 300 a day, would the contractor save
money by employing more men and not paying the fine?
Transcribed Image Text:-SELECTION IN PRESENT ECONOMY PROBLEMS Problem 1 A contractor has a construction company that is currently handling a 2- storey residential building construction that should be completed 150 days. At present the said contractor has 100 men on the job and it is estimated that they will finish the work in 216 days. If of the 100 men, 60 are paid Php 300 a day, 30 are paid Php 350 a day and 10 are paid Php 550 a day and if for each day beyond the original 100 days, the contractor has to pay Php 1,800 liquidated damages. How many total men should the contractor have to complete the work on time and without paying any liquidated damages? If the additional men of 10 are paid Php 550 a day and the rest are paid Php 300 a day, would the contractor save money by employing more men and not paying the fine?
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