1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Table 4.13 Cost estimation of integrated machine option Integrated metal casting production with core knock- Half integrated metal casting production with core knock- production without core out system. Machining will be knock-out system and Solely metal casting out system and CNC machining center outsource CNC machining center (outsource) Purchasing cost, $ 500000 220000 150000 Annual maintenance, salary and operating cost (together with outsourcing cost), $ 90000 55000 10000 Annual revenue. $ 150000 75000 50000 Salvage value, $ 2000 25000 30000 5 Life years 10

1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Table 4.13 Cost estimation of integrated machine option Integrated metal casting production with core knock- Half integrated metal casting production with core knock- production without core out system. Machining will be knock-out system and Solely metal casting out system and CNC machining center outsource CNC machining center (outsource) Purchasing cost, $ 500000 220000 150000 Annual maintenance, salary and operating cost (together with outsourcing cost), $ 90000 55000 10000 Annual revenue. $ 150000 75000 50000 Salvage value, $ 2000 25000 30000 5 Life years 10

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7CE

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