Mary Princess C.

De La Peña BSME-3C Engineering Economy

Assignment

1. A building contractor has a contract which will expire in 30 days. He has 80 men on the
job and can finish the work in 50 days. The wage per day of 40 men is P 20 and that of
the other 40 men is P 18 each for 8 hours work per day. The fine or liquidated damages
for delay in the work is P 400 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 will
have a wage of P 20 each per day, will the contractor save money by employing enough
men to enable him to complete the work on time or not adding men and paying the
liquidated damages? How much is the saving if any? No overtime.

Given:

𝐶𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑙𝑖𝑚𝑖𝑡 = 30 𝑑𝑎𝑦𝑠
𝑑𝑎𝑦𝑠 𝑜𝑓 𝑤𝑜𝑟𝑘 = 50 𝑑𝑎𝑦𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛𝑡 = 80 𝑚𝑒𝑛
𝑅𝑎𝑡𝑒1 = 𝑃 20.00 𝑝𝑒𝑟 𝑑𝑎𝑦
𝑅𝑎𝑡𝑒2 = 𝑃 18.00 𝑝𝑒𝑟 𝑑𝑎𝑦
𝐷𝑒𝑙𝑎𝑦 𝑐𝑜𝑠𝑡 = 𝑃 400 𝑝𝑒𝑟 𝑑𝑎𝑦

Solution:

Initial Conditions:

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐿𝑎𝑏𝑜𝑟𝑐𝑜𝑠𝑡 + 𝐷𝑎𝑚𝑎𝑔𝑒𝑠𝑐𝑜𝑠𝑡

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒1 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 ) + 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒2 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 )
+ 𝐷𝑒𝑙𝑎𝑦𝑐𝑜𝑠𝑡 (𝑑𝑎𝑦𝑠 − 𝐶𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑙𝑖𝑚𝑖𝑡 )
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 50(20)(40) + 50(18)(40) + 400(50 − 30)
𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕 = 𝑷𝟖𝟒, 𝟎𝟎𝟎. 𝟎𝟎

With additional Men:

𝐶𝑜𝑛𝑡𝑟𝑎𝑐𝑡𝑙𝑖𝑚𝑖𝑡 = 𝑑𝑎𝑦𝑠 𝑜𝑓 𝑤𝑜𝑟𝑘 = 30 𝑑𝑎𝑦𝑠

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛𝑡 = 80 𝑚𝑒𝑛 + 𝑎𝑑𝑑𝑖𝑡𝑖𝑛𝑎𝑙 𝑚𝑒𝑛
𝑅𝑎𝑡𝑒3 = 𝑅𝑎𝑡𝑒1 = 𝑃 20.00 𝑝𝑒𝑟 𝑑𝑎𝑦
𝑅𝑎𝑡𝑒2 = 𝑃 18.00 𝑝𝑒𝑟 𝑑𝑎𝑦

𝑊𝑜𝑟𝑘𝑑𝑜𝑛𝑒1 = 𝑊𝑜𝑟𝑘𝑑𝑜𝑛𝑒2
1 𝑚𝑒𝑛(𝑑𝑎𝑦𝑠) 1 𝑚𝑒𝑛(𝑑𝑎𝑦𝑠)
=
80 𝑚𝑒𝑛 𝑥 50 𝑑𝑎𝑦𝑠 (80 + 𝐴𝑑𝑑𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑚𝑒𝑛)(30 𝑑𝑎𝑦𝑠)
 (80𝑥50)𝑚𝑒𝑛(𝑑𝑎𝑦𝑠)
𝐴𝑑𝑑𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑚𝑒𝑛 = − 80
30 𝑑𝑎𝑦𝑠
𝑨𝒅𝒅𝒊𝒕𝒊𝒐𝒏𝒂𝒍 𝒎𝒆𝒏 = 𝟓𝟑. 𝟑𝟑 𝒐𝒓 𝟓𝟒 𝒎𝒆𝒏

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐿𝑎𝑏𝑜𝑟𝑐𝑜𝑠𝑡

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒1 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 ) + 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒2 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 )
+ 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒3 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛3 )
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒1 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 + 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛3 )
+ 𝐷𝑎𝑦𝑠(𝑅𝑎𝑡𝑒2 )(𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑚𝑒𝑛1 )

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 30(20)(40 + 54) + 30(18)(40)

𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕 = 𝑷 𝟕𝟖, 𝟎𝟎𝟎. 𝟎𝟎

Thus, he will save money if he employ more men to complete the work on time, since the total
cost when added is lesser than the paying for the liquidated damages.

𝐴𝑚𝑜𝑢𝑛𝑡 𝑠𝑎𝑣𝑒𝑑 = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡1 + 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡2

𝐴𝑚𝑜𝑢𝑛𝑡 𝑠𝑎𝑣𝑒𝑑 = 84,000 − 78,000
𝑨𝒎𝒐𝒖𝒏𝒕 𝒔𝒂𝒗𝒆𝒅 = 𝑷 𝟔𝟎𝟎𝟎. 𝟎𝟎
2. In manufacturing a certain machine part, it is necessary to make four holes in each part.
Each hole will require one minute if drilled with the aid of a jig. The drill jig would cost
P100 to construct and the drill press operator is paid P2.00 per hour. The four holes can
be made in 20 seconds on a punch press, but a die costing P 350 will be required. It
requires ½ hour setting up the die on the press and the same period of time to tear it
down when the job is completed. Overhead charges for the punch press are P3.50 per
hour. The press operator receives P 3.00 per hour and the set-up man is paid P 5.00 per
hour.
a) Determine the comparative cost for making 1,000 parts.
b) Determine the number of parts to be made for equal cost.

Solution:

a.

For Drill and Jig

𝐷𝑟𝑖𝑙𝑙 𝑎𝑛𝑑 𝐽𝑖𝑔

𝑡ℎ𝑜𝑙𝑒 = 1 𝑚𝑖𝑛
𝐷𝑟𝑖𝑙𝑙 𝐽𝑖𝑔𝑐𝑜𝑠𝑡 = 𝑃 100.00
𝐷 𝑜𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑟𝑎𝑡𝑒 = 𝑃 2.00 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟

𝑡𝑡𝑜𝑡𝑎𝑙 = (𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑙𝑒𝑠)(𝑃𝑎𝑟𝑡𝑠)(𝑡𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑 )

ℎ𝑜𝑙𝑒𝑠 𝑚𝑖𝑛𝑢𝑡𝑒
𝑡𝑡𝑜𝑡𝑎𝑙 = (4 ) (1000 𝑝𝑎𝑟𝑡𝑠) (1 ) = 4000 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 = 𝟔𝟔. 𝟔𝟕 𝒉𝒐𝒖𝒓𝒔
𝑝𝑎𝑟𝑡 ℎ𝑜𝑙𝑒

𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 = 𝑡𝑡𝑜𝑡𝑎𝑙 (𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑟𝑎𝑡𝑒 )

𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 = 66.67 ℎ𝑜𝑢𝑟𝑠 (2) = 𝑷 𝟏𝟑𝟑. 𝟑𝟒
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐷𝑟𝑖𝑙𝑙 𝐽𝑖𝑔𝑐𝑜𝑠𝑡 + 𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝑃 100.00 + 𝑃 133.34
𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕 = 𝑷 𝟐𝟑𝟑. 𝟑𝟒

For Punch Press

𝑃𝑢𝑛𝑐ℎ 𝑃𝑟𝑒𝑠𝑠
𝐷𝑖𝑒𝑐𝑜𝑠𝑡 = 𝑃 350.00, 𝑡𝑠𝑒𝑡 𝑢𝑝 = 2(30 min.) = 1 hour
𝑃𝑢𝑛𝑐ℎ 𝑃𝑟𝑒𝑠𝑠𝑟𝑎𝑡𝑒 = 𝑃3.50 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟 𝑐ℎ𝑎𝑟𝑔𝑒 = 𝑃 3.00 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
𝑆𝑒𝑡 𝑢𝑝𝑟𝑎𝑡𝑒 = 5.00 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟
𝑡4(ℎ𝑜𝑙𝑒𝑠) = 20 𝑠
 𝑡𝑡𝑜𝑡𝑎𝑙 = (𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 ℎ𝑜𝑙𝑒𝑠)(𝑃𝑎𝑟𝑡𝑠)(𝑡𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑 )
ℎ𝑜𝑙𝑒𝑠 20 𝑠
(4 ) (1000 𝑝𝑎𝑟𝑡𝑠) ( )
𝑝𝑎𝑟𝑡 4 ℎ𝑜𝑙𝑒
𝑡𝑡𝑜𝑡𝑎𝑙 = = 𝟓. 𝟓𝟔 𝒉𝒐𝒖𝒓𝒔
3600
𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 = 𝑡𝑡𝑜𝑡𝑎𝑙 (𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑟𝑎𝑡𝑒 + 𝑃𝑢𝑛𝑐ℎ 𝑃𝑟𝑒𝑠𝑠𝑟𝑎𝑡𝑒 )
𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 = (5.56 ℎ𝑜𝑢𝑟𝑠)(3 + 3.5 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟) = 𝑷𝟑𝟔. 𝟏𝟒
𝑆𝑒𝑡 𝑢𝑝𝑐ℎ𝑎𝑟𝑔𝑒 = 𝑡𝑠𝑒𝑡 𝑢𝑝 (𝑆𝑒𝑡 𝑢𝑝𝑟𝑎𝑡𝑒 ) = 1 ℎ𝑜𝑢𝑟 (5 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟) = 𝑷𝟓. 𝟎𝟎

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐷𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 + 𝑆𝑒𝑡 𝑢𝑝𝑐ℎ𝑎𝑟𝑔𝑒 + 𝐷𝑖𝑒𝑐𝑜𝑠𝑡

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝑃 350.00 + 𝑃 36.14 + 𝑃 5.00
𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒔𝒕 = 𝑷 𝟑𝟗𝟏. 𝟏𝟒

Comparative Cost
Total Cost Total Time Total Cost Total Time
P 233.34 66.67 hours P 391.14 6.56 hours

By differentiating the two, it is apparent that the Drill and Jig costs lesser but it really requires
a lot of time while the Punch press costs higher/bigger but decreases its required operation
time by a large margin about a ratio of 10:1 (with regards to gathering and deconstruction
period).

b.

𝐷𝑟𝑖𝑙𝑙 𝑎𝑛𝑑 𝐽𝑖𝑔𝐶𝑜𝑠𝑡 = 𝑃𝑢𝑛𝑐ℎ 𝑃𝑟𝑒𝑠𝑠𝐶𝑜𝑠𝑡

𝐷𝑟𝑖𝑙𝑙 𝐽𝑖𝑔𝑐𝑜𝑠𝑡 + 𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 = 𝐷𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝐶𝑜𝑠𝑡 + 𝑆𝑒𝑡 𝑢𝑝𝑐ℎ𝑎𝑟𝑔𝑒 + 𝐷𝑖𝑒𝑐𝑜𝑠𝑡

Solve for the number of parts replace total time with its basic formula:

ℎ𝑜𝑙𝑒𝑠 𝑚𝑖𝑛𝑢𝑡𝑒
(4 ) (𝑁) (1 )
𝑝𝑎𝑟𝑡 ℎ𝑜𝑙𝑒
𝐷𝑟𝑖𝑙𝑙 𝐽𝑖𝑔𝑐𝑜𝑠𝑡 + (𝐷 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑟𝑎𝑡𝑒 )
60
ℎ𝑜𝑙𝑒𝑠 20 𝑠
(4 ) (𝑁) ( )
𝑝𝑎𝑟𝑡 4 ℎ𝑜𝑙𝑒
= (𝑃𝑟𝑒𝑠𝑠 𝑂𝑝𝑒𝑟𝑎𝑡𝑜𝑟𝑟𝑎𝑡𝑒 + 𝑃𝑢𝑛𝑐ℎ 𝑃𝑟𝑒𝑠𝑠𝑟𝑎𝑡𝑒 ) + 𝑆𝑒𝑡 𝑢𝑝𝑐ℎ𝑎𝑟𝑔𝑒
3600
+ 𝐷𝑖𝑒𝑐𝑜𝑠𝑡

2 13
100 + 𝑁= 𝑁 + 350 + 5
15 360
𝑵 = 𝟐𝟔𝟐𝟐. 𝟖𝟔 = 𝟐𝟔𝟐𝟑 𝑷𝒂𝒓𝒕𝒔
3. Two types of filter are being considered for use in a Diesel engine. Filter A requires a
premium quality lubricating oil costing P11.50 per liter. The filter and the oil will have to
be changed after 1,000 hours of operation and 4 liters of new oil added after each 100
hours. This filter costs P 150. Forty liters of oil fill the engine crankcase. For filter B a
lower grade of oil costing P 5.85 per liter maybe used. This filter costs P 175. In this case
the filter would be change each 1,000 hours, the oil completely changed after each 500
hours and 4 liters of oil added after 250 hours of use. Which combination should be used?

Solution:

For Filter A

𝑂𝑖𝑙𝑐𝑜𝑠𝑡 = 𝑃11.50 𝑝𝑒𝑟 𝑙𝑖𝑡𝑒𝑟

𝐿𝑖𝑓𝑒 𝑠𝑝𝑎𝑛 = 1000 ℎ𝑜𝑢𝑟𝑠
𝐿𝑖𝑡𝑒𝑟𝑠
𝑂𝑖𝑙 𝐴𝑑𝑑𝑒𝑑 = 4
100 ℎ𝑜𝑢𝑟𝑠
𝐶𝑟𝑎𝑛𝑘 𝐶𝑎𝑠𝑒 𝑉𝑜𝑙𝑢𝑚𝑒𝑚𝑎𝑥 = 40 𝐿
𝐹𝑖𝑙𝑡𝑒𝑟𝐶𝑜𝑠𝑡 = 𝑃 150.00

𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑖𝑛𝑖𝑡𝑖𝑎𝑙 = 𝑂𝑖𝑙𝑐𝑜𝑠𝑡 (𝐶𝑟𝑎𝑛𝑘 𝐶𝑎𝑠𝑒 𝑉𝑜𝑙𝑢𝑚𝑒𝑚𝑎𝑥 ) = 11.50 𝑝𝑒𝑟 𝐿𝑖𝑡𝑒𝑟 (40 𝐿)
𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑖𝑛𝑖𝑡𝑖𝑎𝑙 = 𝑷 𝟒𝟔𝟎. 𝟎𝟎

4 𝐿𝑖𝑡𝑒𝑟𝑠
𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 = 𝑂𝑖𝑙 𝐴𝑑𝑑𝑒𝑑(𝐿𝑖𝑓𝑒 𝑠𝑝𝑎𝑛)(𝑂𝑖𝑙𝑐𝑜𝑠𝑡 ) = 11.50 𝑝𝑒𝑟 𝐿𝑖𝑡𝑒𝑟 ( ) (1000 ℎ𝑜𝑢𝑟𝑠)
100 ℎ𝑜𝑢𝑟
𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 = 𝑷 𝟒𝟔𝟎. 𝟎𝟎

𝐶𝑜𝑠𝑡𝑇𝑜𝑡𝑎𝑙 = 𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑖𝑛𝑖𝑡𝑖𝑎𝑙 + 𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 + 𝐹𝑖𝑙𝑡𝑒𝑟𝐶𝑜𝑠𝑡 = 460 + 460 + 150

𝑪𝒐𝒔𝒕𝑻𝒐𝒕𝒂𝒍 = 𝑷 𝟏𝟎𝟕𝟎. 𝟎𝟎
For Filter B

𝑂𝑖𝑙𝑐𝑜𝑠𝑡 = 𝑃5.85 𝑝𝑒𝑟 𝑙𝑖𝑡𝑒𝑟

𝐿𝑖𝑓𝑒 𝑠𝑝𝑎𝑛𝑓𝑖𝑙𝑡𝑒𝑟 = 1000 ℎ𝑜𝑢𝑟𝑠
𝐿𝑖𝑓𝑒 𝑠𝑝𝑎𝑛𝑜𝑖𝑙 = 500 ℎ𝑜𝑢𝑟𝑠
𝐿𝑖𝑡𝑒𝑟𝑠
𝑂𝑖𝑙 𝐴𝑑𝑑𝑒𝑑 = 4
250 ℎ𝑜𝑢𝑟𝑠
𝐶𝑟𝑎𝑛𝑘 𝐶𝑎𝑠𝑒 𝑉𝑜𝑙𝑢𝑚𝑒𝑚𝑎𝑥 = 40 𝐿
𝐹𝑖𝑙𝑡𝑒𝑟𝐶𝑜𝑠𝑡 = 𝑃 175.00

 Since oil will be changed every 500 hours cost of oil in the crank case is doubled.

𝑂𝑖𝑙 𝐶𝑜𝑠𝑡1000 ℎ𝑜𝑢𝑟𝑠 = 2 𝑂𝑖𝑙𝑐𝑜𝑠𝑡 (𝐶𝑟𝑎𝑛𝑘 𝐶𝑎𝑠𝑒 𝑉𝑜𝑙𝑢𝑚𝑒𝑚𝑎𝑥 ) = 2 (5.85 𝑝𝑒𝑟 𝐿𝑖𝑡𝑒𝑟)(40 𝐿)
𝑂𝑖𝑙 𝐶𝑜𝑠𝑡1000 ℎ𝑜𝑢𝑟𝑠 = 𝑷 𝟒𝟔𝟖. 𝟎𝟎

𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 = 𝑂𝑖𝑙 𝐴𝑑𝑑𝑒𝑑(𝐿𝑖𝑓𝑒 𝑠𝑝𝑎𝑛𝑓𝑖𝑙𝑡𝑒𝑟 )(𝑂𝑖𝑙𝑐𝑜𝑠𝑡 )

4 𝐿𝑖𝑡𝑒𝑟𝑠
= 5.85 𝑝𝑒𝑟 𝐿𝑖𝑡𝑒𝑟 ( ) (1000 ℎ𝑜𝑢𝑟𝑠)
250 ℎ𝑜𝑢𝑟
𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 = 𝑷 𝟗𝟑. 𝟔𝟎

𝐶𝑜𝑠𝑡𝑇𝑜𝑡𝑎𝑙 = 𝑂𝑖𝑙 𝐶𝑜𝑠𝑡1000 ℎ𝑜𝑢𝑟𝑠 + 𝑂𝑖𝑙 𝐶𝑜𝑠𝑡𝑎𝑑𝑑𝑒𝑑 + 𝐹𝑖𝑙𝑡𝑒𝑟𝐶𝑜𝑠𝑡 = 468 + 93.60 + 175
𝑪𝒐𝒔𝒕𝑻𝒐𝒕𝒂𝒍 = 𝑷 𝟕𝟑𝟔. 𝟔𝟎

Thus, the combination B should be used so that P 333.00 will be saved. Compared to
combination A, basically it would do the same thing and cost proportionately less and the
added oil cost is much lesser in comparison to combination A in a comparable time frame.
Combination B is the best option should be used.