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Material handling function is fundamental to any manufacturing or distribution system. In order to improve the productivity of a manufacturing system, the management decided to install a new tow line. The tow line conveyor required length is 1200 ft., cost per foot = $25, installation cost per foot is 30% of purchase cost, and salvage value is 10% of purchase cost.

a. Suppose production volume is 300 units/day (350 days per year) what is the material handling cost per unit of product per year

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