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.

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

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2.2CE

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