Purchase welding robot, Trump-Clinton Auto-Body Shop is

Purchase welding robot

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Reference no: EM132186304

Trump-Clinton Auto-Body Shop is deciding whether to weld car frames manually or to purchase a welding robot. If welded manually, investment costs for equipment are only $100,000. The per-unit cost of manually welding a car frame is $500 per frame. On the other hand, a robot capable of performing the same work costs $1,200,000. Robot operating costs including support labor are $200 per frame. How many frames should Trump-Clinton Auto-Body Shop weld to reach break-even point? Build an Excel model to show how this calculation can be done (hint: Build a model and use Goal Seek function to solve the problem). Please show all work involved to solve the problem.

Reference no: EM132186304

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Purchase welding robot : Trump-Clinton Auto-Body Shop is deciding whether to weld car frames manually or to purchase a welding robot.

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