A company produces 118,473 units of product A annually, which sold at an average price of $31.27 per unit. The company is considering the purchase of a machine that can be used to improve the quality of products and that could sell for $40.14 per ton. The machine would cost $331,484 in annual depreciation and maintenance. 4 employees at a cost of $71,143 per year for each and a supervisor at a cost of $140,178 per year is required to operate the machine, and using the machine to improving each 1 unit of product consumes $0.92 of electricity. Insurance and taxes would cost an additional $176,508 per year. The company has an unused space for its product A's operation area could be used for the machine. The space constitutes 3% of the operation area. The operation are itself is leased at an annual cost of $3 million. The company spends $2,944,817 to produce the 118,473 units of product A, and all 118,473 units would be improved by the machine if the company purchased. What is annual differential profit from buying the machine?
A company produces 118,473 units of product A annually, which sold at an average price of $31.27 per unit. The company is considering the purchase of a machine that can be used to improve the quality of products and that could sell for $40.14 per ton. The machine would cost $331,484 in annual
What is annual differential profit from buying the machine?
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