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
icon
Related questions
Question

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.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Factors Affecting Housing Decision
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning