A young mechanical engineer devised two different approaches to completing a production task. Both methods entail the purchase of the same working space as well as other capital equipment that will only be employed for this operation. A crew of three guys costing P30.00 per hour is required for Method A. This approach will produce 10 units per hour, two of which will be rejects. Method B requires a workforce of two workers, each of whom costs P35.00 per hour, to produce eight units per hour, one of which will be rejected. Each reject costs P20.00 because direct material is lost. If a certain total number of units is to be produced, find which method is economical. DO NOT USE EXCEL, SOLVE USING FORMULA

A young mechanical engineer devised two different approaches to completing a production task. Both methods entail the purchase of the same working space as well as other capital equipment that will only be employed for this operation. A crew of three guys costing P30.00 per hour is required for Method A. This approach will produce 10 units per hour, two of which will be rejects. Method B requires a workforce of two workers, each of whom costs P35.00 per hour, to produce eight units per hour, one of which will be rejected. Each reject costs P20.00 because direct material is lost. If a certain total number of units is to be produced, find which method is economical. DO NOT USE EXCEL, SOLVE USING FORMULA

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

Problem 111P

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