PROBLEM 1:

Referring to Problem 1, how many barrels must the inferior machine produce per hour in order to be as profitable as the superior machine?

(a) 240.28

(b) 239.16

(c) 48.06

(d) 6.06

Referring to Problem 1, assuming that the daily demand for petroleum is large enough that all production can be sold at 5,000 pesos per barrel, how much is the profit per day of the more profitable machine?

(a) 1,199,300

(b) 1,194,400

(c) 144,400

(d) 1,197,600

Referring to Problem 1, how much more profit per day can the superior machine generate?

(a) 201,400

(b) 200,700

(c) 48,600

(d) 200,600

Please help answers are in the choices, thank you!

Two types of petroleum drilling machines are being considered for purchase. The capital investments in both machines are more or less the same. The following table summarizes the important information about the two machines