Business, 19.07.2019 21:00 ashleyann9549

In order to increase the profit margin for a certain product, a company is planning to purchase a custom-made machine for $5,000,000. it is anticipated that the introduction of the new machine will reduce the product's variable costs of labor and maintenance by $5.50 per unit and $.95 per unit, respectively. the product manager estimates that 500,000 units of the product will be manufactured and sold each year with a product life cycle of two years, at which time the machine will be discarded with no salvage value. what is the company's total cost savings over the product's life cycle? gaodun

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