= = 1. (10 points per section) A production machine operates in a semi-automatic cycle but a worker must tend the machine 100% of the time to load parts. Unloading is accomplished automatically. The worker's cost rate = $27/hr including applicable labor overhead rate. The equipment cost rate of the machine = $13.00/hr including applicable overhead costs. Cost of the starting parts = $0.15/pc. The job runs several months so the effect of setup can be ignored. Each cycle, the actual process time 14 sec, and time to load the part 6 sec. Automatic unloading takes 3 sec. A proposal has been made to install an automatic parts-loading device on the machine. The cost of the device is $0.075/min and would reduce the part loading time to 3 sec each cycle. The device would also relieve the worker from full-time attention to the machine. Instead, the worker could tend four machines, effectively reducing the labor cost to 20% of its current rate for each machine. The device costs $85,000. The operation runs 250 days per year, eight hours per day. Assume availability = 100% and scrap rate = 0. Determine the cost per part produced: a) without the parts loading device (Hint: calculate the production time first), and b) with the parts loading device installed. c) Determine the number of days of production at which the two alternatives are equivalent in cost (Hint: Calculate the production rates first)