lloy of aluminum or steel. There is a 3000 units. Steel costs P3.80 per kg a costs P8.70 per kg. If steel is used unit weighs 110grams, for aluminum 'hen steel is used, 50 units can be per hour, for aluminum, 80 units pe f tool costing P640, which will be us 3,000 units are finished. The cost of and the operator is P10.80 per hour ne cost per unit if steel is used?

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
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Engineering Economics 0005 Please show step by step solution
A machine part to be machined may be made either
from an alloy of aluminum or steel. There is an
order for 8000 units. Steel costs P3.80 per kg. while
aluminum costs P8.70 per kg. If steel is used, the
steel per unit weighs 110grams, for aluminum, 30
grams. When steel is used, 50 units can be
produced per hour, for aluminum, 80 units per hour
with aid of tool costing P640, which will be useless
after the 8,000 units are finished. The cost of the
machine and the operator is P10.80 per hour. How
much is the cost per unit if steel is used?
Transcribed Image Text:A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8000 units. Steel costs P3.80 per kg. while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110grams, for aluminum, 30 grams. When steel is used, 50 units can be produced per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and the operator is P10.80 per hour. How much is the cost per unit if steel is used?
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