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Pace Automation Corporation in Cookeville, Tennessee must choose the better economical alternative between the two listed below. If 1,000 units are required per year, which alternative is economically attractive? Assume that the life of the automated
equipment is 5 years.
Alternative Resources Required
A Skilled Operator at $25 per hour; 35 minutes per unit of skilled labor time is required.
B Unskilled operator at $12 per hour plus automated equipment costing
$50,000; 10 minutes of operator time per unit is required.
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