A 450 piece/hr 10 hr B 500 piece/hr 8 hr A set of unsharpen ed tools costs $1,50

Question

A 450 piece/hr 10 hr B 500 piece/hr 8 hr A set of unsharpen ed tools costs $1,500 and can be ground 15 times. The cost of each grinding is $20. The time required to change and reset the tools is 2 hours, and such changes are made by a tool-setter who is paid $16/hour. The production machine operator is paid $15/hour, including the time that the machine is down for tool sharpening. Variable overhead on the machine is charged at the rate of $30/hour, including tool-changing time. At what speed should the machine be operated to minimize the total cost per piece?

Explanation / Answer

Answer : B 500 piece/hr 8 hr we can see cost is increasing as the time is increasing , what we need to maintain is that we should use full time as more as possible , so in part A it can work 10 hr and produce 4500 piece than need 2 hr to work on this . total time for A to again start :12 hr produce = 4500 total time for B again start : 10 hr produce = 4000 but if we see after 120 hr , when both will again at same position A in 120 hr produces = 45000 B in 120 hr produces = 48000 so option B is correct choice .. sorry its a little tedious method, but its right answer and very good approach. please do rate if useful

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