wrong answer = 5 down vote

RTP 3. Life Cycle Costing - Optimal Plant Capacity Tablet costs * 5,00,000 to develop, it has undergone extensive research and is ready for production. Currently, the Firm is Y-Connections has developed ultra-thin Tablet S-5 with few features like the ability to open two apps at the same time. This deciding on plant capacity, which could cost either = 35,00,000 or 3 52,00,000. The additional outlay would allow the Plant to increase capacity from 500 units to 750 units. The relevant data for the life cycle of the Tablet at different capacity level are - Expected Sales 500 units 750 units Sale Price 79,600 per unit 69,600 per unit Variable Selling Costs 10% of Selling Price 10% of Selling Price Salvage Value of Plant 6,25,000 9,00,000 Profit Volume Ratio 40% Advise Y-Connections, on the Optimal Plant Capacity to install. The Tablet's Life Cycle is 2 years. Ignore Time Value of Money. Life Cycle Cost with Time Value of Money RIP A Company has a choice to purchase either Machine A or B for producing its product . If the Machine has a life of 12 years, and lance Costs 12% a year, advise which Machine is preferable. The Annuity of 12% Finance Costs for 12 years is 6.134 Machine A B Martial Cost *28,000 340,000 nual Operating Costs *24,000 p.a. 18,000 p.a