Given that the Digby company will increase automation for the product by 2.0, the cost of the automation is going to be $10,800,000
We have the following details to answer the question with.
Material cost is 14.04
The current automation is 7 percent
The cost of labor is 6.95
Next sound capacity is 1,350
Automation increase = 2% + 7% = 9%
Cost to increase automation =
Capacity * 4 (new automation - old automation)
1350 * 4(9-7)
= 10800
An input of 1 is given as 1000.
Therefore the automation cost is 10800 * 1000
= $10800000
complete question
The Digby company will increase its automation for the Dim product by 2.0. Assuming no further change in capacity, how much will this investment in automation cost?
Select : 1
$10,800,000
$21,600,000
$18,900,000
$9,450,000
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