How many units must system produce for the savings to pay

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Question: The cost to operate a certain 20-station transfer line is $72/hr. The line operates with an ideal cycle time of OAS min. Downtime occurrences happen on average or per 14 cycles. Average downtime per occurrence is 9.5 min. It is proposed that a new computer system and associated sensors be installed to monitor the line and diagnose downtime occurrences when they happen. It is anticipated that this new system will reduce downtime from its pre-sent value to 7.5 min. If the cost of purchasing and installing the new system is $15,000, how many units must the system produce for the savings to pay for the computer system?

Reference no: EM131453235

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