solve all within 30 mins An electric motor is used to power an assembly line. The motor runs continuously at various speeds and after acertain number of hours must be replaced. A food-processing company that uses motors of this type isconsidering whether to purchase the motors from supplier A or supplier B. Information related to the differentcosts and useful life of the motors supplied by the two suppliers is as follows:Price per motorUseful life (hours)Energy cost per hourSupplier A Supplier B$775$1,025876730$0.155$0.160Assume that the food-processing company operates 365 days a year, 24 hours a day, for a total of 8,760 hoursof operation annually. Conduct a total cost of ownership analysis for the motors.The total cost of ownership for Supplier A is $(Enter your response rounded to the nearest whole number.)(Enter your response rounded to the nearest wholeThe total cost of ownership for Supplier B is Snumber.)Based on the total cost of ownership analysis, the best decision is to purchase

Given in the question: SupplierA SupplierB Price per motor $775.00 $1,025.00…

The total cost of ownership for Supplier A is $. (Enter your response rounded to the nearest whole number.) The total cost of ownership for Supplier B is S. (Enter your response rounded to the nearest whole number.) Based on the total cost of ownership analysis, the best decision is to purchase

The total cost of ownership for Supplier A is $. (Enter your response rounded to the nearest whole number.) The total cost of ownership for Supplier B is S. (Enter your response rounded to the nearest whole number.) Based on the total cost of ownership analysis, the best decision is to purchase

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 57P: Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent...

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