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5-21. Two manufacturing methods have been proposed for a new production requirement. One method involves two general-purpose machines that cost $17.500 each, installed. Each will

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5-21. Two manufacturing methods have been proposed for a new production requirement. One method involves two general-purpose machines that cost $17.500 each, installed. Each will produce 10 pieces per hr and will equire an operator costing S10.00 per hr during operation. The other method requires a special-purpose machine costing $55.000 that will produce 20 pieces per hr and will require an operator costing $12.00 per hr during operation. Both types of machines are expected to last 10 years and have negligible salvage values. Other relevant data are as follows General-purpose Special-purpose machine (each) machine Power cost per hr: Fixed maintenance per yr: Variable maintenance per hr: Insurance and floor space per yr: S 0.50 750.00 0.25 4.900.00 S 0.75 1,000.00 0.20 5,500.00 5-21. Two manufacturing methods have been proposed for a new production requirement. One method involves two general-purpose machines that cost $17.500 each, installed. Each will produce 10 pieces per hr and will equire an operator costing S10.00 per hr during operation. The other method requires a special-purpose machine costing $55.000 that will produce 20 pieces per hr and will require an operator costing $12.00 per hr during operation. Both types of machines are expected to last 10 years and have negligible salvage values. Other relevant data are as follows General-purpose Special-purpose machine (each) machine Power cost per hr: Fixed maintenance per yr: Variable maintenance per hr: Insurance and floor space per yr: S 0.50 750.00 0.25 4.900.00 S 0.75 1,000.00 0.20 5,500.00

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