D'Andre Hill ETMG U$320$

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Objective:

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Greenville Manufacturing Company received a contract to assemble $200$ units of equipment. The company has two options for

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carrying out its assembly operation. Option A is to hire a team of $3$ semi$-$skilled workers at $$16$ per hour for each worker. The semi$-$

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skilled team can assemble a unit in $1\mathrm{.}5$ hours. Option B is to hire skilled workers at a rate of $$30$ per hour for each worker. A skilled

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worker can individually assemble a unit in $3$ hours. Assuming the quality of work for the two option is the same, which option

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should the company select and why?

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Select option A because the total labor cost is $$4,600$ lower than Option B

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Select option A because the labor cost per unit is $$18$ lower than Option B

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Select option B because the labor cost per unit is $$18$ lower than Option $A$

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Select option B because the total labor cost is $$3,600$ lower than Option A

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$19$ Three alternative designs have been created by engineers for a new machine that inspects solar power photovoltaic cells for home use. The costs for the three designs $($where $x$ is the annual production rate$)$ follow:

$\backslash$table$[[$Design$,$Fixed Cost,Variable Cost $(\frac{\text{\$}}{x})$Question $1$

Greenville $320$ Engr. Co$.$ is considering a robot that will cost $$75,000$ to buy. After $6$ years its salvage value is $$15,000.$ An overhaul costing $$8,000$ will be needed in year $4.$ O & M costs will be $$2,000$ per year. Using these facts, prepare a table of cashflows and draw the cashflow diagram.

What is the total cashflow in year $1?-$

$$80,000\mathrm{.}00$

What is the total cashflow in year $4?-$

$$10,000\mathrm{.}00$

$-$What is the total cashflow in year $6?$

$$13,000\mathrm{.}00$

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