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Question: 1. What cost factor is the per unit de manufacturing cost most sensitive to and why?

2. An automatic process controller will eliminate the current manual control operation. Annual cost of the current method is $4,000. If the controller has a service life of 13 years and an expected market value of 11% of the first cost, what is the maximum economical price for the controller? Ignore interest.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92314333

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