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A manager of Paris Manufacturing, which produces computer hard drives, is planning to lease a new, automated inspection system. The manager believes the new system

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A manager of Paris Manufacturing, which produces computer hard drives, is planning to lease a new, automated inspection system. The manager believes the new system will be more accurate than the current manual inspection process. The firm has had problems with hard drive defects in the past; the automated system should help catch these defects before the drives are shipped to the final assembly manufacturer. The relevant information folows. Current Manual Inspection System Annual fixed cost $41,000 Inspection variable cost per unit $19.50 per unit New, Automated Inspection System Annual fixed cost $174,000 Inspection variable cost per unit $1.50 per unit Suppose annual demand is 8,000 units. Should the firm lease the new inspection system? This problem includes break-even calculations. For a review of how to calculate break-even analysis, please refer to Chapter 6-Equations 6.1, 6.2, and 6.3. Round your answer to the nearest whole number Breakeven volume: hard drives Since the annual demand of 8,000 hard drives is Select than the breakeven volume, the firm Select lease the new inspection system

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