An IE works in the automation department of a surgical equipment manufacturing company that produces specially-ordered equipment for hospi- tals. To upgrade the quality of the assembly pro- cess of the camera used in laparoscopic surgery probes, two approaches are available: make and buy. The make alternative has an initial equipment cost of $175,000, a life of 5 years, a $25,000 sal- vage value, a processing cost of $3000 per camera, and an M&O cost of $60,000. The buy alternative requires contracting the assembly operation exter- nally at a cost of $8100 per camera. If the MARR is 12% per year, how many cameras per year must be assembled to justify the make alternative?
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answer is 35 cameras
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