Question: 2. A mine has a choice between two machines to mine ore. The basic cost data is presented below. The variable operating costs is

2. A mine has a choice between two machines to mine ore.

2. A mine has a choice between two machines to mine ore. The basic cost data is presented below. The variable operating costs is $5 per unit for machine A and $2 per unit for machine B. If the cost of the investment is 13.6%, what annual production is required to justify purchase of machine B? [10] Item Machine A Machine B Purchase Price, $ Salvage value, $ Fixed annual operating Cost, $ Life, years 30,000 46,000 2,000 4,800 5,000 TX 10 6.

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