Please answer part B, not A

A. A one-product plant will operate 250 days per year using a single 8hour shift each day. Sales (one of each component goes into each unit of product). The operations required to produce each component are given in the table below, as are the associated standard time and scrap rates. Proportion uptime is expected to be 90% during each 8hour shift. Determine how many machines are required of each type, assuming that a product layout will be used. Therefore, no machine will be shared between operations, thus eliminating the need for setup changes. (35pt)

	Component	Operation	Machine	Production time	Scrap rate
	A	1	Lathe	7.0 min/pc	3%
	A	2	Milling machine	10.0 min/pc	5%
	B	3	Lathe	5.0 min/pc	3%
	B	4	Milling machine	13.0 min/pc	6%
	B	5	Drill	4.0 min/pc	4%

B. For the previous problem, assume that the service life of all the machines is 15 years and the salvage value is 10% of the purchase cost. Calculate annual cost of these machines using the straight-line technique to calculate depreciation. The following table provides initial costs of each machine. In addition, calculate unit costs of the components A and B based on annual costs of the equipment used to manufacture each component. (15pt)

	Machine	Initial cost
	Lathe	$120,000
	Milling machine	$200,000
	Drill	$20,000