Question: Wave operates the line with this machine 260 days each year. The sales are equal to production on this line. Instructions: Given the information above,

 Wave operates the line with this machine 260 days each year.

Wave operates the line with this machine 260 days each year. The sales are equal to production on this line. Instructions: Given the information above, what are the consequences of Sweet Wave replacing the maching that is slowing down production because of breakdowns? Revenues (Retain): Sell price x units per day x260 days x2 years Production Costs (Retain): Cost per unit x units per day x260 days 2 years Revenues (Replace): Sell price x Units per day (x2) x 260 days x2 years Production Costs (Replace): Cost per unit x Units per day (x2) x 260 days 2 years

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