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An electric motor is used to power an assembly line. The motor runs continuously at various speeds and ater a certain number of hours must
An electric motor is used to power an assembly line. The motor runs continuously at various speeds and ater a certain number of hours must be replaced. A food-processing company that uses motors of this type is considering whether to purchase the motors from supplier A or supplier B. Information related to the different costs and useful life of the motors supplied by the two suppliers is as follows: Supplier A Supplier B Price per motor Useful life (hours) Energy cost per hour 730 $0.295 1,050 $1,175 876 S0.260 Assume that the food-processing company operates 365 days a year, 24 hours a day, for a total of 8,760 hours of operation annually Conduct a total cost of ownership analysis for the motons The total cost of owmership for Supplier A is S (Enter your response rounded to the nearest whole number)
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