A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8,000 units. Steel Cost P3.80 per kg, while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110 grams, for aluminum 30 grams. When steel is used, 50 units can be produced per hour; for aluminum, 80 units per hour with the aid of a tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and operator is P10.80 per hour. If all other costs are identical, determine which material will be more economical.

A machine part to be machined may be made either from an alloy of aluminum or steel. There is an order for 8,000 units. Steel Cost P3.80 per kg, while aluminum costs P8.70 per kg. If steel is used, the steel per unit weighs 110 grams, for aluminum 30 grams. When steel is used, 50 units can be produced per hour; for aluminum, 80 units per hour with the aid of a tool costing P640, which will be useless after the 8,000 units are finished. The cost of the machine and operator is P10.80 per hour. If all other costs are identical, determine which material will be more economical.

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

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.1CE

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plz solve both parts within 30-40 mins I'll give you multiple upvote