SITUATION 3: A machine used for cutting materials in a factory has the following outputs per hour at various seeds and required periodic tool regrinding at the intervals cited. Seed Outputs per hour Tool regrinding A 200 pieces Every 8 hours B 280 pieces Every 5 hours A set of tools cost P12,600 and can be ground twenty times. Each regrinding costs P540.00 and the time needed to regrind and change tools is 1 hour. The machine operator is paid P350.00 per hour including the time the tool is changed. The tool grinder who also sets the tools to the machine is paid P400.00 per hour. The hourly rate chargeable against the machine is P380.00 regardless of machine seed. Which seed is the most economical?

SITUATION 3: A machine used for cutting materials in a factory has the following outputs per hour at various seeds and required periodic tool regrinding at the intervals cited. Seed Outputs per hour Tool regrinding A 200 pieces Every 8 hours B 280 pieces Every 5 hours A set of tools cost P12,600 and can be ground twenty times. Each regrinding costs P540.00 and the time needed to regrind and change tools is 1 hour. The machine operator is paid P350.00 per hour including the time the tool is changed. The tool grinder who also sets the tools to the machine is paid P400.00 per hour. The hourly rate chargeable against the machine is P380.00 regardless of machine seed. Which seed is the most economical?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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