3. A manually operated milling machine costs $50,000. It will have a service life of 6 years with an anticipated salvage value of $ 5.000 at the end of its life. The machine will be used to produce one type of part at a rate of 12 parts/hour. The annual cost to maintain the machine is $3,000. The machine overhead rate is 20% (applicable to capital investment, maintenance, and salvage value of the equipment). Labor to run the machine costs S 10.00/hour and the labor overhead is 25%. Suppose that an alternative to the manually operated production machine is available. The alternative is an automated CNC milling machine, costing $120,000, but capable of a production rate of 36 parts/hour. The service life is 5 years with a salvage value of $ 12,000 at the end of that time. Annual maintenance will cost $ 10,000. One-third of one operator costing S 24.00/hour will be required to run the machine. The overhead used for this machine is 30% (applicable to capital investment, maintenance, and salvage value of the equipment) and the overhead for the labor is 25%. (a) Determine the cost break-even point for the automated and manual methods of production. (b) If annual demand for these parts is expected to be 80,000 parts, which machine will you recommend for purchase? How many hours per year will it take to achieve this expected quantity of 80,000 parts on your selected machine? For both machines, the interest rate/rate of retum applicable is 20% (80 points)