Case study of mechanix

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Reference no: EM133082060

Mechanix is a machine shop and a paper manufacturing plant gave it a P100,000.00 budget to fabricate a machine part needed for their preventive maintenance program. There are two material options, steel, and alloy steel which have approximately the same weight per item which is 0.39 kg. Steel costs P60.50 per kg and alloy costs P 100 per kg. Two sets of lathe and milling machines will do the work with their corresponding operators and each has an operating rate cost of P86.72 per hour. Utilizing all available sets of machines, steel can be fabricated at a rate of 20 pieces per hr and alloy can be done 16 pieces per hr but needs a special tool with a cost of P2000.00 good for 220 pieces of finished alloy part.

(a) How many STEEL type can be manufactured by Mechanix nad commit to delivering to its customer, in pcs?

(b) How much is the difference in terms of pcs of STEEL to that of ALLOY type can be manufactured by Mechanix, in pcs?

(c) How many ALLOY type can be manufactured by Mechanix and commit to delivering to its customer, in pcs?

Reference no: EM133082060

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