Question: (c) A customer expresses his desire to purchase certain components if their price does not exceed $1.00 each. Given the following data: Tooling cost Setting-up

(c) A customer expresses his desire to purchase

(c) A customer expresses his desire to purchase certain components if their price does not exceed $1.00 each. Given the following data: Tooling cost Setting-up time Tool setters rate per hour Machine operators rate per hour Time to manufacture one component Material cost per component Overhead cost per hour (including depreciation) $1000.00 6 hours 8.00 4.00 2 minutes 0.30 13.00 (i) What is the minimum number of components that the customer must agree to purchase at this price for the manufacturer to break even? (ii) Assuming that the tooling and original setting-up will be sufficient for the production of 25,000 components and the customer agrees to buy this quantity, what is the minimum price that each component can be sold for if no loss is to be incurred by the manufacturer

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