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, $ 30,000 46,000 Salvage value, $ 2,000 0 Fixed annual operating cost, $ 4,800 5,000 Life, years 10 6 SM 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, $ 30,000 46,000 Salvage value, $ 2,000 0 Fixed annual operating cost, $ 4,800 5,000 Life, years 10 6 SM