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Birmingham Boit, inc, has been approached by one of its customers about producing 800,000 special purpose parts for a new home product The customer wants

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Birmingham Boit, inc, has been approached by one of its customers about producing 800,000 special purpose parts for a new home product The customer wants 100.000 parts per.year for eight years. To provide these parts, Pirmingharn would need to acquire a $460.000 new production mactune. The new machine woula tave no salvage value at the end of its eigftse year life. The customet has offered to pary Birmingham $7.50 per unit for the parts. Eirminghums managers hwe estumated that, in addition to the new machine, the company would incur the foliowing: costs to produce each purt: in addition anfusi fixed out-of pocket corts reluted to the production of these parts would be 320000 Note: Round your final answer to the nearest whole dodir

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