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6. Permanent tooling is to be evaluated for an operation and product. Let the estimated unit savings in direct labor be $.20 for a

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6. Permanent tooling is to be evaluated for an operation and product. Let the estimated unit savings in direct labor be $.20 for a part if tooling is used, burden on labor saved -35%, cost of each setup $120, interest rate = 20%, allowance for taxes and insurance =10%, allowance for depreciation and obsolescence = 50%, and allowance for maintenance = 25%. The cost of the fixture is $5,000. With one run per year, how many pieces must be made per year to have the fixture pay for itself?

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