Question
2. A piece of automated production equipment has a first cost of $100,000. The rest of the attributes are as follows: (30 points) Salvage
2. A piece of automated production equipment has a first cost of $100,000. The rest of the attributes are as follows: (30 points) Salvage Value (SV) = $10,000 Annual maintenance cost = $3000 Equipment rate of production = 10 units per hour Each unit is worth $2.00 in added revenue. ROR = 20% One operator will be required to tend to the machine at the rate of $10/hr. In this case, no OHR are applicable Raw materials is $0.20 per unit. Determine the following: A. The profit Break-Even point. B. How many hour of operation are required to produce the units indicated in the BEP? C. How much loss or profit will be made if 50,000 units are produced?
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