The monthly demand for ice cans being manufactured by Mr. Cruz is 3500 pieces. With a manually operated guillotine, the unit cutting cost is 25.00. If an automatic hydraulic guillotine at a price of 305000 is being ised he will cut by 30% the unit cutting cost. Disregarding the cost of money, how mant months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now? A. 62 mons. B. 12.20 mons. C. 10.76 mons. D. 16.12 mons.
The monthly demand for ice cans being manufactured by Mr. Cruz is 3500 pieces. With a manually operated guillotine, the unit cutting cost is 25.00. If an automatic hydraulic guillotine at a price of 305000 is being ised he will cut by 30% the unit cutting cost. Disregarding the cost of money, how mant months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now? A. 62 mons. B. 12.20 mons. C. 10.76 mons. D. 16.12 mons.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PB: Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and...
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The monthly demand for ice cans being manufactured by Mr. Cruz is 3500 pieces. With a manually operated guillotine, the unit cutting cost is 25.00. If an automatic hydraulic guillotine at a price of 305000 is being ised he will cut by 30% the unit cutting cost. Disregarding the cost of money, how mant months will Mr. Cruz be able to recover the cost of the machine if he decides to buy now?
A. 62 mons.
B. 12.20 mons.
C. 10.76 mons.
D. 16.12 mons.
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