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A new highway is to be built and the contractor has a choice of two sites on which to setup the asphaltmixing plant equipment. The
A new highway is to be built and the contractor has a choice of two sites on which to setup the asphaltmixing plant equipment. The contractor estimates that it will cost $1.15 per cubic yard mile to haul the asphaltpaving material from the mixing plant to the job location. Factors relating to the two mixing sites are as follows: Cost Factor Site A Site B Average hauling distance 6 miles 4.3 miles Monthly rental of site $1,000 $5,000 Cost to set up and remove equipment $15,000 $25,000 Hauling expense $1.15/yd3-mile $1.15/yd3-mile Flagperson not required SSS/day The job requires 50,000 cubic yard of mixed asphalt-paving material It is estimated that four months or 17 weeks of five working days per week will be required for the job. . Assume that the cost of the return trip is negligible. Which is the better site? For the selected site, how many cubic yards of paving material does the contractor have to deliver before starting to make a profit if paid $8.05 per cubic yard delivered to the job location
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