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Currently, Apple buys Phone Screens from Samsung to manufacture their phones. The screens cost $267. You, an employee of Apple, have looked into buying a
Currently, Apple buys Phone Screens from Samsung to manufacture their phones. The screens cost $267. You, an employee of Apple, have looked into buying a machine that will make the screens internally. The machine will cost $1.6 Million and it will take a robot (inital cost of $88,000) with a yearly maintenance cost of $5,500 and a full-time employee being paid $44,000 yearly to operate the machine. Making the screens in house will cost $140 per screen. There will be a yearly maintenance cost on the machine of $67,000 and a major maintenance overhaul in year 4 costing $130,000. Your company MARR is 3.7% and your project life is 8 years, what is the annual demand for screens that would allow the project to break even? What is the Annual Equivalent Cost of the process ? Number of Screens per year to break even (Whole Number)
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