Question: 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

6. Permanent tooling is to be evaluated for an

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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