2 Vitaross is a national manufacturer of home health care appliances. It is faced with a make or-buy decision. A newly engineered lift can be installed in a car trunk to raise and lower a wheelchair. The steel arm of the lift can be purchased internationally for RM3.5 per unit or made in-house. If manufactured on site, two machines will be required (Machine A and Machine B). The criteria and the costs are given in the Table 3 Table 3 Criteria Machine a Machine b Initial investment 18000 120000 Life span 6 4 Salvage value 2000 500(carry away coat) Overhaul cost 3000 after 3 years N/A Annual operating cost 6,000 5,000 Additional cost Operator cost 12.50/hr Operator costs 12.50/hr + 15,000/years for extra pumping Production output per 8 hours 1000 units 1000 units MARR 16% 15% Your task is to calculate: i. The number of units to be produced each year to justify the option to make it yourself at the factory. ii. The maximum capital expense justifiable to purchase machine A, assuming all other estimates for machines A and B are as stated, the company expects to produce 10,000 units per year