Workshop 1: Opportunity Cost Principle and Decision Making: The Application
Situation and Details: Mr. X makes P500 an hour as consultant and he is planning to
have his house painted. Will he consider paying someone to paint his house or decide
to do it by himself.
Choice: He decided to pay someone for the Job.
Choice Assessment:
Choice Possible Costs
Assessmen
t
1. He can save money for
the labor of painting his
house and used it for
more necessary
expenses
2. He can change the
color of his house &
achieve the color
whenever he wants
3. He can design his
house using the things
he already has like
using recycled materials
Qualitative to save more money
4. He can maintain his
body active
5. He can decide the time
when he paints his
house and the time that
will not disturb him from
his work.
6. He will have the
freedom of choice in
regards of the outcome
of the paint job and will
have self-satisfaction
from his own creativity
Possible Benefits Remarks
1. A professional 1. More Savings and
painter has a clean Fewer Expenses
work and Expected to 2. Creativity
have a good result 3. Productive Thinker
2. He will not be having 4. Resourceful
a hard time painting 5. Healthy Mind
his house 6. Proficient in Time
3. He can design the Management
house according to 7. Satisfactory for
his style by work
explaining and telling 8. Innovator
the painter what he
wants and save
himself from the
tiresome job.
4. He can spend more
time doing other
things instead of
painting, especially
the things that he will
enjoy doing such as
golf, baseball, etc.
5. The painter knows
the proper and safe
way of painting.
6. He will have expert
advice which will lead
 7. He can begin, pause, to proper application,
and resume the course maintenance, and
of the paint job in his guaranteed good
own timing and results.
condition whenever he 7. Professional have the
pleases. skills to do this
8. Painting the house will particular job which
help relieve stress and will ensure outcomes
find something fun to do that can be
rehabilitated on cue
to his requests
8. Will have time for
overtime and earn
more than the usual
earnings.
1. Can save finances on 1. If Mr.X earns 500 per 1. Greater Savings
painting his house, a hr and he works 8hrs will approximately
painter's annual salary per day. So, 500x8 = reach almost
is about 37.97 per hour. P4,000 per day his 5,000.00 for labor
salary. If Mr.X earns and materials for
Max of 7hrs/day: 37.97 x 4,000x 20 days’ repainting.
7= 265.79 (weekdays only) =
Max of 5 days: P80,000 per month. 2. Mr. X expenses for
265.79 x 5 = 1,328.95 Within 5 days of painting materials
Max of 3 painters: 1,328.95 working for the will cost 1,540.00
x 3 = 3,986.85 painter, it cost only
3,986.85 for just
Quantitative 2. Evolve his house color 1-day salary of his 3. Make his own
for 1 Galloon of Paint work he can pay the choice of design
(350 to 400ft) – 200.00 painter and have a and materials for
Max of 7 Galloons – 200.00 good result. 3,500.00
x 7 = 1,400.00
Roller Brush – 140.00 2. Reduce workloads 4. He will have lots of
for 5 days , 80,000/5 time to relax and
3. Using Recycled days = 16,000 be Physically and
Materials (Paint Roller, Mentally Healthy
Paint Roller, Extension 3. He can design the for 5,000.00
Brush, Drop cloths, house according to
Paint Brushes, Paint his budget, paint
Tray, Sandpaper,
 Painter’s Tape) – costs 300 per can 5. Cautiousness,
8,000.00 300 x 3 = 900 he can when choosing
save more than 1000 only the materials
4. Body active and attend if he sticks to using with good
Gym Membership= minimal design. standard and
2,500.00 doing the work
4. He can spend more with safety and
5. Time Management time doing other carefulness for
Hourly rate: 500 pesos things instead of 10,000.00
painting, especially
Max of 8hrs/day: 500.00 x the things that he will 6. Precisions, all
8 = 4,000.00 enjoy doing such as work assumptions
Max of 5 days/ Month golf, baseball, etc. were met exactly
(Saturday): 4,000.00 x 5 Stress and Relaxed as what it wants it
days = 20,000.00 fee = 5,000.00 to be for 5,000.00

6. worry free and 5. The painter knows 7. Satisfactory and

satisfaction = 2,000.00 the proper and safe Flexibility for
way of painting. 15,000.00
7. Know priorities = Hazard pay: 500.00
2,000.00 500.00 x 5 = 2, 500.00 8. Dutiful and
conscientious for
8. Stress Reliever = 6. He will have expert 35,000.00
2,500.00 advice which will lead
to proper application,
maintenance, and
guaranteed good
results. Maintenance
= 5,000.00

7. Professional has the

skills to do this
particular job which
will ensure outcomes
that can be
rehabilitated on cue
to his requests.
Worry free and
satisfaction =
2,000.00
 8. Will have time for
overtimes and earn
more than the usual
earnings. Let’s say
Mr.X extend his work
until Saturday for
5hrs. If there are 5
Saturdays in a
month, 5x500=2,500
,So 2,500x5 = 12,000

Monetary
40,526.85 47,386.85 80,040.00
Value (Total)

GROUP 6 BE314 (7675)

Leader: Christine Joy B. Pates
Members:
Jasmine M. Macasading
Jhonah Joyce B. Lumba
Kershie Quia L. Yabut
Kristine M. Ancuna
Marion Munchie G. Udarbe
Sittie Ranyah Suraik