A CNC milling machine has a purchase price of £100,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 6 years. If the machine is to be used for 2 shifts with each shift working for 37 hours/week and 45 weeks/ year. What is the machine cost/ hr which must be charged in order to amortise the costs over the 6 year period? Express your answer in £/ hour but just write the numerical answer rounded up to the nearest penny. To make the calculation simpler ignore the effects of compound interest, you can assume that over the 6 year period you will be required to pay back borrowed money for the machine purchase amounting to 6% interest on the sum borrowed.

A CNC milling machine has a purchase price of £100,000 and it is considered from an accounting standpoint to be depreciated to zero value over a period of 6 years. If the machine is to be used for 2 shifts with each shift working for 37 hours/week and 45 weeks/ year. What is the machine cost/ hr which must be charged in order to amortise the costs over the 6 year period? Express your answer in £/ hour but just write the numerical answer rounded up to the nearest penny. To make the calculation simpler ignore the effects of compound interest, you can assume that over the 6 year period you will be required to pay back borrowed money for the machine purchase amounting to 6% interest on the sum borrowed.

Precision Machining Technology (MindTap Course List)

2nd Edition

ISBN:9781285444543

Author:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Publisher:Peter J. Hoffman, Eric S. Hopewell, Brian Janes

Chapter2: Measurement, Materials, And Safety

Section2.5: Quality Assurance, Process Planning, And Quality Control

Problem 10RQ: If an X-bar chart graph falls below the LCL or rises above the UCL, a machining process is said to...

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