The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton. One method of processing costs Php 1,650 per ton and recovers 93% of the gold, while another method costs only Php 1,500 per ton and recovers 81% of the gold. If gold can be sold at Php 8,500 per gram, which method is better and by how much? Hint: Consider the income and cost per ton of ore. Solve for the net receipt of each method. Note: Write only A or B for the better method (first blank). Input numerical answers only on the savings (second blank), do not type the units, space or comma.
The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of gold per ton. One method of processing costs Php 1,650 per ton and recovers 93% of the gold, while another method costs only Php 1,500 per ton and recovers 81% of the gold. If gold can be sold at Php 8,500 per gram, which method is better and by how much? Hint: Consider the income and cost per ton of ore. Solve for the net receipt of each method. Note: Write only A or B for the better method (first blank). Input numerical answers only on the savings (second blank), do not type the units, space or comma.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of
gold per ton. One method of processing costs Php 1,650 per ton and recovers 93% of
the gold, while another method costs only Php 1,500 per ton and recovers 81% of the
gold. If gold can be sold at Php 8,500 per gram, which method is better and by how
much? Hint: Consider the income and cost per ton of ore. Solve for the net receipt of
each method.
Note: Write only A or B for the better method (first blank). Input numerical answers only
on the savings (second blank), do not type the units, space or comma.
Answers:
Better method
Savings: Php](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32509d8f-3eb8-412a-b22b-8919afa8e523%2Fb4a7ce91-61d2-49b9-9309-eaee0003694b%2F8au92ri_processed.png&w=3840&q=75)
Transcribed Image Text:The ore of a gold mine in the Mountain Province contains, on the average, 0.5 gram of
gold per ton. One method of processing costs Php 1,650 per ton and recovers 93% of
the gold, while another method costs only Php 1,500 per ton and recovers 81% of the
gold. If gold can be sold at Php 8,500 per gram, which method is better and by how
much? Hint: Consider the income and cost per ton of ore. Solve for the net receipt of
each method.
Note: Write only A or B for the better method (first blank). Input numerical answers only
on the savings (second blank), do not type the units, space or comma.
Answers:
Better method
Savings: Php
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