Question: Willams Auto has a machine that installs tires. The machine is now in need of repair. The machine originally cost $10,800 and the repair will
Willams Auto has a machine that installs tires. The machine is now in need of repair. The machine originally cost $10,800 and the repair will cost $1,800, but the machine will then last two years. The labor cost of operating the machine is $075 per tire. Instead of then be reduced to $0.55 per tire. Williams buy a new machine at a cost of $5.800 that would also last two years, the labor cost would Required: a. Determine the total (two-years) cost for both repaiting and replacing the machine. b. Should Williams repair or replace the machine? Repair Replace
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