A metal part for which annual demand is 140,000 units is made on a CNC machine at a rate of 210 parts per hour. It can be made using tool steel costing $0.30 per pound or using brass stock costing $1.40 per pound. The weight per steel piece is 0.0353 po

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A metal part for which annual demand is 140,000 units is made on a CNC machine at a rate of 210 parts per hour.  It can be made using tool steel costing $0.30 per pound or using brass stock costing $1.40 per pound.  The weight per steel piece is 0.0353 pounds and the weight per brass piece is 0.0384 pounds.  When it is made using steel, it was found that 50% of the parts made per hour are defect-free; when it made using brass stock, it was found that 85% of the parts made per hour are defect-free.  If the total labor and overhead cost for operating the machine is $25.00 per hour, how much more does it cost to make 1000 defect-free parts from steel than to make 1000 defect-free parts from brass on this machine?  (Enter your answer as a number without the dollar sign.)

    • 11 years ago
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