capital cost

Supplier A has old equipment that produces at the rate of 10,000 per hour. Supplier B has equipment that produces at the rate of 20,000 per hour and supplier C has new equipment that produces at 40,000 per hour. You need 60,000 pieces. Each supplier uses the same amount of labor per hour. Disregarding the cost of capital, which supplier should give you the lowest price?

  1. 👍 0
  2. 👎 0
  3. 👁 321
  1. I'd hope it would be the supplier with the fastest equipment. Labor at 40,000 pieces per hour is much less than the others.

    1. 👍 0
    2. 👎 0
    👩‍🏫
    Ms. Sue

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?

  2. Statistics

    A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard

  3. statistics, please help

    Thaarugo, inc., produces a GPS device that is becoming popular in parts of scandinavia, When thaarugo produces one of these, a printed circuit board (PCB) is used, and it is populated with several electronic components, Thaarugo

  4. accounting 100

    The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000

  1. math

    a paint supplier has two machines that prouce both indoor paint and outdoor paint. to meet its contractual obligations,the company must produce at least 60 gallons of indoor paint and 100 gallons of outdoor paint. machine 1 makes

  2. math

    Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?

  3. Managerial Economics

    A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1200 plus $2 for each DVD; supplier B has no set-up fee

  4. prod and oper management

    Hahn Manufacturing purchases a key component of one of its products from a local supplier. The current purchase price is $1,500 per unit. Efforts to standardize parts succeeded to the point that this same component can now be used

  1. math

    a paint supplier has two machines that prouce both indoor paint and outdoor paint. to meet its contractual obligations,the company must produce at least 60 gallons of indoor paint and 100 gallons of outdoor paint. machine 1 makes

  2. Finance

    Dr. Whitten has decided to purchase equipment that has a cost of $60,000 and will produce a pretax net cash inflow of $30,000 per year over its estimated useful life of six years. The equipment will have no salvage value and will

  3. Statistics

    A purchasing agent for a trucking company is shopping for replacement tires for their trucks from two suppliers. The suppliers' prices are the same. However, Supplier A's tires have an average life of 60,000 miles with a standard

  4. statistics

    A manufacturing company produces 10,000 plastic glasses per week. This company supplies plastic glasses to another company, which packages the glasses as part of picnic sets. The second company randomly samples 10 glasses from the

You can view more similar questions or ask a new question.