At this juncture, you will be required to elaborate your answers about the following questions: SITUATION 01. A company manufactures dining tables which mainly consist of a wooden frame and a table top. The different materials used to manufacture the tables and their costs are tabulated as follows: Description Quantity Cost Wood for frame and legs 0.1 cu. m ₱12,000/cu. m Table top with sun-mica finish 1 ₱3000 Leg bushes 4 ₱10/bush Nails 100g ₱300/kg Total Labor 15hr ₱50/hr. In view of the growing awareness towards deforestation and environmental conservation, the company feels that the use of wood should be minimal. The wooden top therefore could be replaced with a granite top. This would require additional wood for the frame and legs to take extra weight of the granite top. The materials and labor requirements along with cost details to manufacture a table with granite top are tabulated as follows: Description Quantity Cost Wood for frame and legs 0.15 cu. m ₱12,000/cu. m Table top with Granite 1.62 ₱800/sq. m Leg bushes 4 ₱25/bush Nails 50g ₱300/kg Total Labor 8hr ₱50/hr. If the cost of the dining table with granite top works out to be lesser than the table with wooden top, the company is willing to manufacture dining tables with granite tops. 1. Compute the cost of manufacture of the table with wooden top.
College of Engineering Education 2ndFloor, B&E Building Matina Campus, Davao City Telefax: (082) 296-1084 Phone No.: (082)300-5456/300-0647 Local 133 Page 22of 262. Compute the cost of manufacture of the table with granite top. 3. Which of the following is the best alternative? 4. Find the economic advantage of the best alternative. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ SITUATION 02.The chief engineer of refinery operations is not satisfied with the preliminary design for storage tanks to be used as part of a plant expansion program. The engineer who submitted the design was called in and asked to reconsider the overall dimensions in the light of an article in the Chemical Engineer, entitled “How to size future process vessels?” .
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Depreciation, Matina Campus, College of Engineering Education, B&E Building