Question: 2 - ) Mowasalat is considering between two alternatives for purchasing sensors to improve the monitoring of transport services in Qatar. Alternative 1 : Purchase

2-) Mowasalat is considering between two alternatives for purchasing sensors to improve the monitoring of transport services in Qatar.
Alternative 1: Purchase sensors at a cost of \(\$ 30\) per unit that can be used directly in the vehicles. Alternative 2: It can manufacture the sensors locally at \$20 per unit. However, it needs to buy an electronic device today at \$150,000. Labor and other operating costs are estimated to be \$30,000 per year over the study period of 10 years. The salvage value is estimated at \(10\%\) of the first cost, and the interest rate is \(10\%\) per year.
Using the breakeven analysis, determine which alternative Mowasalat should choose if the number of needed sensors is 5,500 each year. (60 p )
2 - ) Mowasalat is considering between two

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!