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Refer to the paragraph below to answer the questionAn industrial engineer has designed two alternative methods of accomplishing a production job Both methods involve the acquisition of the same working place and other capital equipment to be used for this job only Method A calls for a crew consisting of three men each costing P30000 per hour This method will result in the production of 10 units per hour of which two will be rejectsMethod B calls for a crew of two men each costing P3500 per hour and should result in the production of eight units per hour of which one will be rejectThe cost of the direct material lost in each reject is P2000 If a certain total number of units is to be produced, find which method is more economicalMethod A:

  • Per unit cost =1625 Correct
  • Per unit cost =1825
  • Per unit cost =1525
  • Per unit cost =1925
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