Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 11, Problem 18P
To determine

Calculate the breakeven value.

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In certain cases, experience will indicate the best time to perform certain operations to maintain equipment at the highest level of efficiency. A machine used for cutting materials in a factory has the ff outputs per hour at various speeds and requires periodic tool regrinding at the intervals cited. Speed Output per Hour Tool Regrinding A 200pcs Every 8 hrs B 250pcs Every 7 hrs C 280pcs Every 5 hrs A set of tools costs P1,800 and can be ground twenty times. Each regrinding costs P18 and the time needed to regrind and change tools is 1 hour. The machine operator is paid P28 per hour, including the time the tool is changed. The tool grinder who also sets the tools to the machine is paid P25 per hour. The hourly rate chargeable against the machine is P54, regardless of machine speed. What is the total cost of Speed B.
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