A manufacturing facility has an air system with quick-disconnect fitting at each of the 75 workstations. Over time, these fittings develop air leaks, with an average leakage area of 0.2mm2 for each fitting. On your first work-term, you note the excessive leakage, and propose replacement at a cost of $75 parts and labour at each workstation. Your boss says that if you can prove a first-year savings of greater than the replacement cost, he will pay you a bonus equal to the difference for the first year. Did you make money, and if so, how much? Assume a cost of 9 cents per m3 and a system pressure of 6 bar
A. Yes, $362.50
B. No, there is no savings.
C. Yes, $375.50
D. No, the savings are less than the replacement cost.