Engineering economics

PRESENT ECONOMY STUDIES

1. Which among the materials will result in the most economical product and at the same time give the best results? Stockholders will be visiting a resins plant. It was decided by the management that they must paint the plant.Boysen paint cost P700 per gallon and covers 350 ft per gallon. The manufacturer claims that it will last 4 years and can be applied at a rate of 100 ft per hour.

Dutchmaster paint costs P1000 per gallon and covers 500 ft per gallon. It will last for 5 years and can be applied at a rate of 125 ft per hour. If the painter is paid P40 per hour, which paint should be used?

2.)In manufacturing a kerosene stove, it is necessary to make two half-inch holes in the metal. If these are drilled with the help of a jig, each hole will require one minute. The jig will cost P40.00. The drill press operator receives P1.10 per hour.

The holes could be made also on a punch press at the rate of 2 holes each for 5seconds. A die

would be required at a cost of P80.00. The punch operator will receive P0.90 per hour. If 1,000 stoves are to be produced & the jig/die will have no scrap value, which method will you recommend on the bases of cost and on completion of work?