Question: A company is considering two methods for obtaining a certain part. Method A will involve purchasing a machine for $30,000 with a life of 5
A company is considering two methods for obtaining a certain part. Method A will involve purchasing a machine for $30,000 with a life of 5 years, a $3,000 salvage value, and a fixed annual operating cost of $6,000. Additionally, each part produced by the method will cost $5. Method B will involve purchasing the part from a subcontractor for $35 per part. At an interest rate of 10% per year, determine the number of parts per year required for the two methods to break even. (Enter your answer as a number without the dollar $ sign.)
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