-L Republic of the Philippines

CAMARINES NORTE STATE COLLEGE

F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600, Philippines

COLLEGE OF AGRICULTURE AND NATURAL RESOURCES- LABO

BES 4 - ENGINEERING ECONOMY
1st Semester, AY 2023-2024

NAME: _________________________________
COURSE AND SECTION: ________________

ASSIGNMENT #2
PRESENT ECONOMY STUDIES

1. A certain masonry dam requires 200,000 cu.m. of gravel for its construction. The contractor
found two possible sources for the gravel with the following data:
Source A Source B
Average distance, gravel pit
to dam site. 3.0 km 1.2 km
Gravel cost / cu.m. at pit ---------- P10.00
Purchase price of pit P800,000 ----------
Road construction necessary P450,000 None
Overburden to be removed
at P4.20/ cu.m. ---------- 90,000 cu.m.
Hauling cost per cu.m. per km P4.00 P4.00
Which of the two sites will give lesser cost?

2. A designer has a choice between gray iron and aluminum for an instrument mounting in a power
plant. Either material would serve equally well under the same conditions of use. The per-
kilogram cost of aluminum and gray iron is 650 and P 430, respectively. Each casting made of
aluminum would cost P 315 to machine while the corresponding cost for the gray iron would be
276. If the casting made of aluminum would weigh 0.59 kg while that of iron would be 1.09 kg,
which material should the designer use for the casting?

3. A certain lathe machine can be operated at three speeds with the following results.

Speed Output (pieces per hour) Time between tool

grinds/changes (hours)
A 30 10
B 40 8
C 50 5

A set of unsharpened tools costs P1,500 and can be ground 15 times. Cost of each grinding is
P 60. The time required to change and reset the tools is 2 hours and the tool changer-setter is
paid P 50 per hour. Overhead charge on the machine is P 15 per hour including tool-change
time. At what speed should the machine be operated?

4. Two options are being considered on the digging of an irrigation canal in a nearby province which
measures 2 m wide, 1 m deep and 2 km long. The first option, the use of manual labor, will
require 20 laborers at P 280 each per day, and each can dig, on the average, 0.5 m³ per hour.
In addition, two foremen will also be employed at P 350 each per day.

BES 4-ENGINEERING ECONOMY

 -L Republic of the Philippines
CAMARINES NORTE STATE COLLEGE
F. Pimentel Avenue, Brgy. 2, Daet, Camarines Norte – 4600, Philippines

COLLEGE OF AGRICULTURE AND NATURAL RESOURCES- LABO

The second option requires the use of a ditch-digging machine which may be rented at a cost of
P 4,000 per day, in actual use and in transit to and from the construction site. In actual use, fuel
and oil will cost P 800 a day. It takes one day, each way, for transporting the machine. Freight
charges for transporting the machine will be 5,500 each way. The machine operator
accompanies the machine and is paid P 400 each day. The services of four laborers at P 280
each per day would also be needed. The machine can dig 1 m³ every 3 minutes.
Assuming there are 8 working hours per day, which is the cheaper option?

5. An electrical contractor has a job which should be completed in 100 days. At present, he has 80
men on the job and it is estimated that they will finish the work in 130 days. If of the 80 men, 50
Are paid P190 a day, 25 at P220 a day, and 5 at P300 a day and if for each day beyond the
original 100 days, the contractor has to pay P2,000 liquidated damages:
(a) How many more men should the contractor add so he can complete the work on
time?
(b) If the additional men of 5 are paid P220 a day and the rest at P190 a day, would the
contractor save money by employing more men and not paying the fine?

6. The monthly demand for ice cans being manufactured by Mr. Cruz is 3,200 pieces. With a
manually operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic
guillotine was offered to Mr. Cruz at a price of P275,000 and which will cut by 30% the unit cutting
cost. Disregarding the cost of money, how many months will Mr Cruz be able to recover the cost
of the machine if he decides to buy now?

7. The volume of the raw material required for a certain machine part is 2.02 cm3. The finished
volume is 1.05c m3 . The time for machining each piece is 45 seconds for steel and 30 seconds
for brass. The cost of steel is P32.50 per kg and the value of steel scrap is negligible. The cost
of the brass is P60.00 per kg and the value of brass scrap is P25.00 per kg. The wage of the
operator is P40.00 per hour and the overhead cost of the machine is P50.00 per hour. The weight
of steel and brass are 0.0081 and 0.0088kg / cm3 respectively. Which material will you
recommend?
8. A building contractor has a contract which will expire in 30 days. He has 80 men on the job and
can finish the job in 50 days. The wage per day of 40 men is P6.00 each and that of the other 40
men is P4.00 each for 8 hours work per day. The fine or liquidated damages for delay in the work
is P100.00 per day. How many more men should the contractor add in order to enable him to
complete the work on time? Assuming that the additional men to be added will be paid P6.00 per
day, will the contractor save money by employing enough men for him to complete the work on
time or by not adding more men and paying the fine? How much is the savings, if any? No
overtime work is permitted.

BES 4-ENGINEERING ECONOMY