Question: ACurrent Manual Inspection System Annual fixed cost = $ 5 4 , 0 0 0 Inspection variable cost per unit = $ 2 0 .

ACurrent Manual Inspection System
Annual fixed cost = $54,000
Inspection variable cost per unit = $20.00 per unit
New, Automated Inspection System
Annual fixed cost = $145,000
Inspection variable cost per unit = $2.10 per unit

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