At this juncture you will be required to elaborate

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.

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2. 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.
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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 Chem ical Engineer, entitled “How to
size future process vessels?” .