Question: The cost to operate a certain 20-station transfer line is $72/hr. The line operates with an ideal cycle time of 0.85 min. Downtime occurrences happen

The cost to operate a certain 20-station transfer line is $72/hr. The line operates with an ideal cycle time of 0.85 min. Downtime occurrences happen on average once per 14 cycles. Average downtime per occurrence is 9.5 min. It is proposed that a new computer system and associated sensors be installed to monitor the line and diagnose downtime occurrences when they happen. It is anticipated that this new system will reduce downtime from its present value to 7.5 min. If the cost of purchasing and installing the new system is $15,000, how many units must the system produce in order for the savings to pay for the computer system?

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