Alpha-Industrial Corporation buys 60 Gallons of lubricants from ABC petroleum for 50 JOD per gal to...
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Alpha-Industrial Corporation buys 60 Gallons of lubricants from ABC petroleum for 50 JOD per gal to lubricate machines in the factory Machines are shut down for maintenance every 60 days. Each time machines are down: Alpha loses 6000 JOD in missed profits from products that were not made. It costs 1000 JOD of cleaning agents every shutdown Alpha is considering a new lubricant from Alpha that will minimize maintenance to 4 times per year. In addition, only 40 gal of the new lubricant is needed (instead of 60 gal). What is the highest price per gal Alpha should pay for the new lube? (5) Select one ea 1250 JOD b. 1150 © 200 JOD d. 90 JOD 1600 Alpha-Industrial Corporation buys 60 Gallons of lubricants from ABC petroleum for 50 JOD per gal to lubricate machines in the factory Machines are shut down for maintenance every 60 days. Each time machines are down: Alpha loses 6000 JOD in missed profits from products that were not made. It costs 1000 JOD of cleaning agents every shutdown Alpha is considering a new lubricant from Alpha that will minimize maintenance to 4 times per year. In addition, only 40 gal of the new lubricant is needed (instead of 60 gal). What is the highest price per gal Alpha should pay for the new lube? (5) Select one ea 1250 JOD b. 1150 © 200 JOD d. 90 JOD 1600
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c 200 JOD Existing Lub Lets find yearly cost of shut down Lub cost 6 shutdown 60 gallons 50 per ... View the full answer
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