3. Aquasystem performed a make/buy analysis to for making a newwater filters. The filter sells for $50 that will require equipment thatwill cost $200,000 and $25,000 annual operating cost comprise thefixed cost. The variable cost is $20 per filter. The equipment has a 5year life, no salvage value, and the MARR is 6% per year. Thedecision to make the filter was based on breakeven point and thehistorical sales level of 500 filter per year.a. Determine the breakeven pointb. An engineer investigated that a supplier can make the filterfor $30 each. Determine whether Aquasystem should makeor buy the filters.

Given: To explain the given statement as follows, We need to find the breakeven point and whether…

3. Aquasystem performed a make/buy analysis to for m: water filters. The filter sells for $50 that will require will cost $200,000 and $25,000 annual operating cost fixed cost. The variable cost is $20 per filter. The ec year life, no salvage value, and the MARR is 6% per decision to make the filter was based on breakeven pc historical sales level of 500 filter per year. Dotormin the hronlkorie int

3. Aquasystem performed a make/buy analysis to for m: water filters. The filter sells for $50 that will require will cost $200,000 and $25,000 annual operating cost fixed cost. The variable cost is $20 per filter. The ec year life, no salvage value, and the MARR is 6% per decision to make the filter was based on breakeven pc historical sales level of 500 filter per year. Dotormin the hronlkorie int

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

3. Aquasystem performed a make/buy analysis to for making a new
water filters. The filter sells for $50 that will require equipment that
will cost $200,000 and $25,000 annual operating cost comprise the
fixed cost. The variable cost is $20 per filter. The equipment has a 5
year life, no salvage value, and the MARR is 6% per year. The
decision to make the filter was based on breakeven point and the
historical sales level of 500 filter per year.
a. Determine the breakeven point
b. An engineer investigated that a supplier can make the filter
for $30 each. Determine whether Aquasystem should make
or buy the filters.

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