=+MVP Sporting Goods Company is considering an investment in one oftwo machines. Tire sew¬

ing machine will increase productivity from sewing 120 baseballs per hour to sewing 180 per hour. The contribution margin is $0.80 per baseball. Assume that any increased production of baseballs can be sold. The second machine is an automatic packing machine for the golf ball line.

The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $24 per hour. The sewing machine will cost $354,300, have an eight-year life, and will operate for