Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $38,000, an annual operating cost (AOC) of $10,000, and a service life of 2 years. Method B will cost $79,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $143,000 initially with an AOC of $3,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 6% of its first cost.
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- Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $34,000, an annual operating cost (AOC) of $5,000, and a service life of 2 years. Method B will cost $77,000 to buy and will have an AOC of $4,000 over its 4-year service life. Method C costs $145,000 initially with an AOC of $6,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 13% of its first cost. Perform a future worth analysis to select the method at i = 14% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $ Method (Click to select) v is selected.Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $45,000, an annual operating cost (AOC) of $6,000, and a service life of 2 years. Method B will cost $85,000 to buy and will have an AOC of $3,000 over its 4-year service life. Method C costs $145,000 initially with an AOC of $5,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 11% of its first cost. Perform a present worth analysis to select the method at /= 14% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ Method (Click to select) is selected. ARequired information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $46,000, an annual operating cost (AOC) of $7,000, and a service life of 2 years. Method B will cost $86,000 to buy and will have an AOC of $3,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $6,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 12% of its first cost. Perform a present worth analysis to select the method at /= 10% per year. The present worth of method A is $ The present worth of methodB is $ The present worth of method C is $ Method (Click to select) vis selected. Cick to selhs BCA
- Required information An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $34,000, an annual operating cost (AOC) of $5,000, and a service life of 2 years. Method B will cost $77,000 to buy and will have an AOC of $4,000 over its 4-year service life. Method C costs $145,000 initially with an AOC of $6,500 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 13% of its first cost. Perform a present worth analysis to select the method at i= 14% per year. The present worth of method A is $ The present worth of method B is $ The present worth of method C is $ Method (Click to select) v is selected.An electric switch manufacturing company is trying to decide between three different assembly methods. Method A has an estimated first cost of $46,000, an annual operating cost (AOC) of $7,000, and a service life of 2 years. Method B will cost $86,000 to buy and will have an AOC of $3,500 over its 4-year service life. Method C costs $115,000 initially with an AOC of $6,000 over its 8-year life. Methods A and B will have no salvage value, but Method C will have equipment worth 12% of its first cost. Perform a future worth analysis to select the method at /= 10% per year. The future worth of method A is $ The future worth of method B is $ The future worth of method C is $ Method: (Click to select) is selected. (Click to select C CBA AAn electric switch manufacturing company has to choose one of three different assembly methods.Method A will have a first cost of $40,000, an annual operating cost of $9000, and a service life of2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6000 overits 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000over its 8-year life. Methods A and B will have no salvage value, but method C will have someequipment worth an estimated $12,000. Which method should be selected? Use present worthanalysis at an interest rate of 10% per year. *please answer in a neat and clear way.
- Company XYZ is conducting an engineering economic analysis to decide whether to make vs purchase position for a necessary element needed ins several products. Now the engineering department has established this information: Option A to purchase 10,000 units annually at a fixed price of $8.50 per unit. The cost of placing the order is insignificant as per the present cost accounting procedure. Option B to manufacture 10,000 units annually with a direct labor cost of $1.50 per unit, manufacturing overhead cost is allotted at 200% of direct labor (which is $3.00 per unit) ) and Direct materials cost at $5.00 per unit. Based on the information, should the unit be purchased or manufactured?One component of communication equipment produced by Briggs Audio Systems is currently being purchased for P225. Management is studying the possibility of manufacturing that component. Annual usage of the part is 5,000 units. Fixed costs (all of which remains unchanged whether the part is made or purchased) are at P140,000 or P28 per unit. If to be produced, Variable costs are P95 per unit for materials; P55 per unit for labor; and P60 per unit for variable manufacturing overhead. Required: Which option would be advantageous and by how much? 1. Make is advantageous by P75,000 2. Buy is advantageous by P75,000 3. Make is advantageous by P65,000 4. Buy is advantageous by P65,000Your manufacturing company is interested in developing a cost model to price a AM part that will be manufactured for production. Based on data that they have collected: Machine and ancillary equipment cost : $1,000,000 Equipment depreciation cost per year: $130,000 Machine Maintenance cost per year: $50,000 Machine operator cost per hour : $40/hr Set up and prep time for each build : 30 min Post processing time per build: 1 hr Material Cost per Kg: $275/kg Amount of material needed per part: 100mgs/part They estimate the following: a. Number of parts made per year: 60,000 b. Each build can build 200 parts simultaneously on a single platform c. Build time for each platform of 200 parts: 25 hrs d. The factory will run 24/7 for 200 days in a year. Under this scenario what will be the cost per part ?
- One component of communication equipment produced by Briggs Audio Systems is currently being purchased for P225. Management is studying the possibility of manufacturing that component. Annual usage of the part is 5,000 units. Fixed costs (all of which remains unchanged whether the part is made or purchased) are at P140,000 or P28 per unit. If to be produced, Variable costs are P95 per unit for materials; P55 per unit for labor; and P60 per unit for variable manufacturing overhead. Required: Which option would be advantageous and by how much? Make is advantageous by P75,000 Buy is advantageous by P75,000 Make is advantageous by P65,000 Buy is advantageous by P65,000 Group of answer choices 1 2 3 4To make an item inhouse, equipment costing $250,000 must be purchased. It will have a life of 4 years, an annual cost of $80,000, and each unit will cost $40 to manufacture. Buying the item externally will cost $100 per unit. At i = 15% per year, it is cheaper to make the item inhouse if the number per year needed is:a. above 1047 unitsb. above 2793 unitsc. equal to 2793 unitsd. below 2793 unitsMorton and Moore LLC (M²) is trying to decide between two machines that are necessary in its manufacturing facility. If M² has a MARR of 10%, which of the following machines should be chosen? Hint: Minimize EUAC. Machine A Machine B 6- 28 620 First cost $45,000 $24,000 Annual operating costs 31,000 35,000 Overhaul in Years 2 and 4 6,000 Overhaul in Year 5 12,000 Salvage value 10,000 8,000 Useful life 8 years 6 years 1 Ne Ac Ca Ca EM Ye Co Pr Ri Vi Ge Lit Ra Ne An Pr Sa Sc Be