Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please solve the following problem using breakeven analysis. A silicon wafer manufacturing company is evaluating two alternatives; the purchase of an automatic polishing system

image

Please solve the following problem using breakeven analysis. A silicon wafer manufacturing company is evaluating two alternatives; the purchase of an automatic polishing system or a semi-automatic polishing system for a wafer polishing process. Two person will operate the automatic polishing machine. However, because of manual material handling, the semi-automatic polishing machine require six workers to operate the system. Table 2 shows the system information. The company estimate production output is 1 250 units per year with expected rate of return of 10% per year Evaluate this option with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic polishing system. First Cost, RM Salvage, RM Life, years Labor Cost, RM per hour Output, units per hour Maintenance Cost, RM per year Table 2: System Information AUTOMATIC POLISHING SYSTEM 40 000 8 000 10 20 15 5 000 for first year and increase 1 000 every year SEMI AUTOMATIC POLISHING SYSTEM 15 000 2 000 5 12 10 4 500

Step by Step Solution

3.35 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Research An Introduction

Authors: Hamdy A. Taha

9th Edition

013255593X, 978-0132555937

More Books

Students also viewed these General Management questions

Question

What is the biggest strength of the program?

Answered: 1 week ago

Question

How did Perpetuum mobile violates the laws of thermodynamics

Answered: 1 week ago