Referring to the manual manufacturing method information given in reviewquestion 12, calculate the total annual cost...

Referring to the manual manufacturing method information given in reviewquestion 12, calculate the total annual cost to produce 100,000 parts per year. Note that theannual cost of maintenance for the machine is $16,000. Additionally, the raw material costis $2.50 per part.

Solutions

Expert Solution

Answer:

The total annua cost to produce 100,000 parts per year is $2,66,000.

Explanation:

No. Of Parts required = 100,000

Raw Material cost Per parts is $ 2.50 ; Total raw material Cost is 100,000 x $ 2.50 = $250,000

The annual Maintenance Cost is $ 16,000 ;

The total cost = Total raw material Cost + The annua Maintenance Cost

= $250,000 +$16.,000

= $266,000

samet mamat answered 1 year ago

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