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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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