The maker of Winglow is purchasing a new stamping machine. Two options are being considered, Rooney and

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The maker of Winglow is purchasing a new stamping machine. Two options are being considered, Rooney and Blair. The sales forecast for Winglow is 8,000 units for next year. If purchased, the Rooney will increase plant fixed costs by \($20,000\) and reduce variable costs by \($5.60\) per unit. The Blair would increase fixed costs by \($5,000\) and reduce variable costs by \($4.00\) per unit. If variable costs are now \($20\) per unit, which machine should be purchased?

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Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

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