The local manger of a nearby Stone Mine has recently contacted the kingdom advisors to ask permission to upgrade his Mine by an additional 70 square metres on top of the already built 140 square metres.
After reviewing his request the Council declined to allow him to upgrade 70sqm, but instead opted that 60sqm would be enough, and that they would offer a ten percent deduction on the cost of any materials brought from the royal warehouse custody not including Tools since they are brought in a constant supply.
Now this manager has been running the mine for so long he is considered a Huckster in the eyes of the council, so every additional squared metre costs him 120 wood, 60 stones and 12 tools.
Buying from the royal warehouse these materials cost him 24¢τ for each fathom of wood, and the same for Stone, although he can get this from the Mine itself. Tools are priced at 12¢τ each, although he already receives a five percent discount on these from buying at a constant level for use in the Mines.
So he already has a supply of Stone from his Mine, but needs to buy enough Tools and Wood for this upgrade in size.
He also needs to hire constructors to build this extension who charge at a rate of 1,200¢τ per squared metre.
Once the construction is complete he also needs to hire six new employees at a charge of 2,000¢τ each.
Question:
How much in ¢τ would the manager need to spend in total for the construction of his mine extension?
Remember to take into account any discounts and the amount of materials he actually needs.
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upgrade 60sqm , 1sqm=120 wood, 60 stones and 12 tools.
so need
wood = 60x120=7200 unit
stones can supply by self so didn't need to count it.
tools = 60x12= 720 unit
the price
wood = 7200x24x90% = 155520¢τ
tools = 720x12x95% = 8208¢τ
extension charge = 60x1200= 72000¢τ
hire employees = 6x2000 = 12000¢τ
Total= 247728¢τ
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