A certain masonry dam requires 200,000 cu m of gravel for its construction. The contractor found two possible sources of gravel with the following data: Average distance gravel pit to dam site Gravel cost /cu.m at pit Purchase price of pit Road construction necessary Overbuden to be removed at P4.20 cu.m Source A 3.0 km P800,000.00 P350,000.00 Source B 1.2 km P10.00 80,000 cu.r

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A certain masonry dam requires 200,000 cu m of gravel for its
construction. The contractor found two possible sources of gravel with
the following data:
Average distance gravel pit to dam site
Gravel cost /cu.m at pit
Purchase price of pit
Road construction necessary
Overbuden to be removed at P4.20 cu.m
Hauling cost per cu.m per km
CreWhich of the two sites will give lesser cost?
Source A
3.0 km
P800,000.00
P350,000.00
P5.00
Source B
1.2 km
P10.00
80,000 cu.m
P5.00
OF PERPET
Transcribed Image Text:A certain masonry dam requires 200,000 cu m of gravel for its construction. The contractor found two possible sources of gravel with the following data: Average distance gravel pit to dam site Gravel cost /cu.m at pit Purchase price of pit Road construction necessary Overbuden to be removed at P4.20 cu.m Hauling cost per cu.m per km CreWhich of the two sites will give lesser cost? Source A 3.0 km P800,000.00 P350,000.00 P5.00 Source B 1.2 km P10.00 80,000 cu.m P5.00 OF PERPET
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