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Referring to the manual manufacturing method information given in reviewquestion 12, calculate the total annual cost...

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Mechanical Engineering

Referring to the manual manufacturing method information givenin reviewquestion 12, calculate the total annual cost to produce100,000 parts per year. Note that theannual cost of maintenance forthe machine is $16,000. Additionally, the raw material costis $2.50per part.

Answer & Explanation Solved by verified expert
4.5 Ratings (678 Votes)

Answer:

The total annua cost to produce 100,000 parts per year is $2,66,000.

Explanation:

No. Of Parts required = 100,000

Raw Material cost Per parts is $ 2.50 ; Total raw material Cost is 100,000 x $ 2.50 = $250,000

The annual Maintenance Cost is $ 16,000 ;

The total cost = Total raw material Cost + The annua Maintenance Cost

                       = $250,000 +$16.,000

                     = $266,000
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