5. The maker of Winglow is purchasing a new stamping machine. Two options are being considered, Rooney

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5. The maker of Winglow is purchasing a new stamping machine. Two options are being considered, Rooney and Blair. The sales forecast for Winglow is 8,000 units for next year. If purchased, the Rooney will increase plant fi xed costs by $20,000 and reduce variable costs by $5.60 per unit. The Blair would increase fi xed costs by $5,000 and reduce variable costs by $4.00 per unit. If variable costs are now $20 per unit, which machine should be purchased?

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Fundamentals Of Engineering Economic Analysis

ISBN: 9781118414705

1st Edition

Authors: John A. White, Kellie S. Grasman, Kenneth E. Case, Kim LaScola Needy, David B. Pratt

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