Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m at pit P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m Hauling cost/m/km P4 P4 Which of the 2 sites will give the lesser cost?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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a certain masonry dam requires 200000 cubic meters of gravel for its construction. the contractor found to possible sources for the gravel with the following data

Source A
Source B
Average distance, gravel pit to dam site
3 km
1.2 km
Gravel cost/m at pit
P10
Purchase price of pit
P800,000
Road construction necessary
P450,000
Overburden to be removed at P4.20/m³
90,000m?
Hauling cost/m?/km
P4
P4
Which of the 2 sites will give the lesser cost?
Transcribed Image Text:Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m at pit P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m? Hauling cost/m?/km P4 P4 Which of the 2 sites will give the lesser cost?
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A certain masonry dam requires 200,000 cu.m. of gravel for its
construction. The contractor found 2 possible sources for the gravel
with the following data
Average distance from gravel pit to
dam site
Gravel Cost/cu.m. at pit
Purchase price of pit
Road construction necessity
Overburden to be removed at
P4.20/cu.m
Hauling cost per cu.m. per km
Isabela
3 km
P800K
P450K
P4
Cagayan
1.2 km
P10
90K cu.m.
P4
Transcribed Image Text:A certain masonry dam requires 200,000 cu.m. of gravel for its construction. The contractor found 2 possible sources for the gravel with the following data Average distance from gravel pit to dam site Gravel Cost/cu.m. at pit Purchase price of pit Road construction necessity Overburden to be removed at P4.20/cu.m Hauling cost per cu.m. per km Isabela 3 km P800K P450K P4 Cagayan 1.2 km P10 90K cu.m. P4
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