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The injector machine goes down roughly 20% of the time (the injector gums up and needs to be cleaned. a quick process). One operator is assigned to service three identical such machines. Each machine can produce 100 parts/hr if running properly (i.e. not down). The operator is paid $10 00/hr and each machine costs $20.00/hr to operate. What is the unit cost for this operation?

Operation Management, Management Studies

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