Respuesta :
Investment in automation cost = $8,800,000.
How is automation cost calculated?
- Current annual workflow expenses are calculated as follows: time (the amount of time each process step takes), cost (the employee cost per hour), frequency (the number of times the workflow is done each month), frequency x 12 (months), plus total software and implementation costs.
- Compared to the manual approach, annual production costs are much cheaper due to lower labor expenditures. Production using the automated system cost $540,000 over a two-year period, while the manual system would have cost $900,000. That amounts to a $360,000 return, or a 90% ROI.
- The economics of automating warehouse operations are becoming more and more obvious. For example, although the minimum wage in the US is $15 per hour, renting a robot (as opposed to buying one for about $100,000) costs only $8 per hour.
The Chester company will increase its automation for the cone product by 2.0. assuming no further change in capacity, how much will this investment in automation cost?
Following are the information of Cent:
Current automation = 7%
Capacity of next round = 1,100
New automation = 7 + 2 = 9
Investment in automation cost = Capacity * (4 * (New automation - previous automation)) * 1000
= 1,100 * (4 * (9 - 7)) * 1,000
= 1,100 * (4 * 2) * 1000
= 1,100 * 8 * 1,000
= $8,800,000.
Investment in automation cost = $8,800,000.
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