The following information is known for a component that can be produced with equal facility upon either of the two machines listed. Assume a linear depreciation over 10 years (40 hours per week and 50 weeks per year). The life of the tools of the two machines is assumed to be over 500 hours.

a. If 600 components are required, what would be the cost per unit using each machine? Which machine should be used? (32 marks) b. What is the breakeven point of using these two machines to manufacture the components? (28 marks) c. What would be the cost of 1200 units when it needs to be produced urgently? (40marks) d. What would be the cost of 1600 units for individual machines when the life of the tool is 1300 units? (50 marks)

Fig: 1

Fig: 2

Fig: 3

Fig: 4

Fig: 5

Fig: 6