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Exercise 3 Three products will be manufactured in a new facility at the Apex Manufacturing Company. They each require an Identical manufacturing operation, but different

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Exercise 3 Three products will be manufactured in a new facility at the Apex Manufacturing Company. They each require an Identical manufacturing operation, but different production times, on a broaching machine. Two alternative types of broaching machines (Mr and M2] are being considered for purchase. One machine type must be selected. For the same annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed below. Nodul Machine MI Machine 1,500 HR 900 R MING 1.750 HA 1.000 STY 2.600 HR 2. OOHR Total 5,8S0HR 200 HR Capital investment $15,000 per machine $22.000 per machine Expected life 5 years 54,000 per machine 55.000 per machine The facility wil operate 2.000 hours per year. Machine was 90% to Machine Mand so for Machine M2. The veld of Machine M95 ond they arbadonan med operation of 7.000 hours per and was paid during se time of Man Mo Machine M2 Market values of both machines are Which machine should be selected the MARR620 por var Exercise 3 Three products will be manufactured in a new facility at the Apex Manufacturing Company. They each require an Identical manufacturing operation, but different production times, on a broaching machine. Two alternative types of broaching machines (Mr and M2] are being considered for purchase. One machine type must be selected. For the same annual demand for the three products, annual production requirements (machine hours) and annual operating expenses (per machine) are listed below. Nodul Machine MI Machine 1,500 HR 900 R MING 1.750 HA 1.000 STY 2.600 HR 2. OOHR Total 5,8S0HR 200 HR Capital investment $15,000 per machine $22.000 per machine Expected life 5 years 54,000 per machine 55.000 per machine The facility wil operate 2.000 hours per year. Machine was 90% to Machine Mand so for Machine M2. The veld of Machine M95 ond they arbadonan med operation of 7.000 hours per and was paid during se time of Man Mo Machine M2 Market values of both machines are Which machine should be selected the MARR620 por var

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