An electric motor is used to power an assembly line. The motorruns continuously at various speeds and after a certain number ofhours must be replaced. A food-processing company that uses motorsof this type is considering whether to purchase the motors fromsupplier A or supplier B. Information related to the differentcosts and useful life of the motors supplied by thetwo suppliers is as follows:
Assume that the food-processing company operates 365 daysa year, 24 hours a day, for a total of 8,760hours of operation annually. Conduct a total cost of ownershipanalysis for the motors.
A. The total cost of ownership for Supplier A is $___________ enter your response here.(Enter your responserounded to the nearest whole number.)
B. The total cost of ownership for Supplier B is ________$enteryour response here.(Enter your response rounded to thenearest whole number.)
An Electric Motor Is Used To Power An Assembly Line The Motor Runs Continuously At Various Speeds And After A Certain N 1 (51.7 KiB) Viewed 38 times
Supplier A
Supplier B
.
Price per motor Useful life (hours) Energy cost per hour Supplier A Supplier B $850 $1,175 730 584 $0.325 $0.345
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