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8. The following table shows the production of a machine at two different production speeds: 20marks Production Speed A Production Speed B Item D=400pieces/hr. D=540

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8. The following table shows the production of a machine at two different production speeds: 20marks Production Speed A Production Speed B Item D=400pieces/hr. D=540 piece/hr. Used tool life-period 15-hours 10-hours Tool price $75/unit of tool $75/unit of tool Changing tool cost $40/unit of tool $40/unit of tool Operating cost $15/hr. $15/hr. Tool changing time 1.5hr. 1.5hr. Production P $0.2-0.01D $0.2-0.01D Interest rate 10% 10% Estimate with considering the life-period is 15-years. a. Each production speed BEP if the machine price is $250,000 b. Which production speed is the most economic one? c. Sketch the economic elements for each speeds. d. Maximum profit. e. Maximum revenue. f. Optimum operating conditions for both speeds

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