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Gemstone quarry is trying to decide whether to invest in a new material - handling system. The current system ( which is old and completely
Gemstone quarry is trying to decide whether to invest in a new materialhandling system. The current system which is old and completely paid for has and annual maintenance cost of $ and cost approximately $ to transport each load of material. The two new system that are being considered vary both in sophistication and cost.
System has a fixed cost of $ and cost perload estimated at $ System has a fixed cost of $ but a perload cost of $
At what volume of demand should gemstone choose system over the old system
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