A Company Is Investigating Two Automated Approaches for Its Production

Question

Examlex · Accepted Answer

The Answer is a.$80,000 + ($2.75)X = $190,000 + ($1.25)X => ($1.50)X = $110,000 => X = 73,333
b.CNC: TC = $ 80,000 + ($2.75)(50,000) = $217,000
FMS: TC = $190,000 + ($1.25)(50,000) = $252,000
CNC is more economical by $35,000
c.CNC: TC = $ 80,000 + ($2.75)(100,000) = $355,000
FMS: TC = $190,000 + ($1.25)(100,000) = $315,000
FMS is more economical by $40,000

A Company Is Investigating Two Automated Approaches for Its Production

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