Question

A coating machine costs $125,000. The coating solution costs $.15 per piece. You expect the coating machine to coat 50,000 parts over its useful life. What is the machine cost per part?

Answer 1

Answer:

$17.50

Explanation:

Cost of 50,000 times coating solution:

15 * 50,000 = 750,000 ($)

So 750,000 + 125,000 = 875,000 ($) ← Total cost

Single cost is 875000 ÷  50,000 = 17.5 ($)