A certain operation is now performed by, hand the labor cost per unit is 0.55 and the annual fixed charge for tool used is estimated at 100 per year. A machine that is being considered for this job will cost of 200. With it labor cost is 0.22 per unit. For what number of units of product year at zero interest and life of six years foe the machine will the annual cost of the two methods break –even? a. What should be the total cost of the machine b. What will be the fixed labor cost on hand operation for machine

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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A certain operation is now performed by, hand the labor cost per unit is 0.55 and the annual fixed charge for tool used is estimated at 100 per year. A machine that is being considered for this job will cost of 200. With it labor cost is 0.22 per unit. For what number of units of product year at zero interest and life of six years foe the machine will the annual cost of the two methods break –even?
a. What should be the total cost of the machine
b. What will be the fixed labor cost on hand operation for machine?
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