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Wave operates the line with this machine 260 days each year. The sales are equal to production on this line. Instructions: Given the information above,
Wave operates the line with this machine 260 days each year. The sales are equal to production on this line. Instructions: Given the information above, what are the consequences of Sweet Wave replacing the maching that is slowing down production because of breakdowns? Revenues (Retain): Sell price x units per day x260 days x2 years Production Costs (Retain): Cost per unit x units per day x260 days 2 years Revenues (Replace): Sell price x Units per day (x2) x 260 days x2 years Production Costs (Replace): Cost per unit x Units per day (x2) x 260 days 2 years
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