A cement kiln with production capacity of 200 tons per day (24 hours) of clinker has at its burning zone about 45 tons of magnesite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks. If locally produced bricks costs P30,000 per ton and have a life of 5 months, while certain imported bricks costing P 25,000 per ton and have a life of 6 months, determine the more economical bricks and by how much.
A cement kiln with production capacity of 200 tons per day (24 hours) of clinker has at its burning zone about 45 tons of magnesite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks. If locally produced bricks costs P30,000 per ton and have a life of 5 months, while certain imported bricks costing P 25,000 per ton and have a life of 6 months, determine the more economical bricks and by how much.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 54P
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A cement kiln with production capacity of 200 tons per day (24 hours) of clinker has at its burning zone about 45 tons of magnesite chrome bricks being replaced periodically, depending on some operational factors and the life of the bricks.
If locally produced bricks costs P30,000 per ton and have a life of 5 months, while certain imported bricks costing P 25,000 per ton and have a life of 6 months, determine the more economical bricks and by how much.
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