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3. ABC Manufacturing Company is looking at two investment options to reduce costs to manufacture a new computer called Tech-20. Alternative 1 is to stay

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3. ABC Manufacturing Company is looking at two investment options to reduce costs to manufacture a new computer called Tech-20. Alternative 1 is to stay in their current location and purchase a new machine that lowers the cost per unit through efficiency. Alternative 2 is to move the production facility to Chile that lowers cost per unit due to lower labor costs. Analyze the following information to make a decision. \begin{tabular}{|l|r|r|} \hline KEY DATA SUMMARY & Alternative 1-Buy Machine & Alternative 2-Move to Chile \\ \hline One-time cost & & \\ \hline Annual Changes & & $0 \\ \hline Additional Revenue & $0 & $62,500 \\ \hline Cost of Goods Savings & $25,000 & $0 \\ \hline Cost Increase (loan) & $0 & $62,500 \\ \hline Total Annual Savings & $25,000 & \\ \hline \end{tabular} 3b. Complete a Breakeven Analysis by calculating the Breakeven Volume and Breakeven investment. Include the appropriate formulas for each calculation. (all the highlighted boxes should be filled) 3c, Based on your analysis, which investment would you suggest ABC Manufacturing Company to choose? Why? Answer: 3d. In your opinion, why do you think ROI and breakeven analysis are important when choosing between two investments rather than just looking at total savings minus total costs. Answer: ABC Manufacturing take into account when making this investment decision? Give your reasoning

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