Guthridge Soap Corporation is evaluating a new soap cutting machine that could eliminate some direct labor costs. The machine would cost $900,000 per year and would cost $0.10 per bar to cut the soap. Currently, Guthridge uses direct labor to cut the soap into bars, which costs $1 per bar. The company currently produces 500,000 bars of soap per year. Should it buy the machine?
Lion Essays is a licensed Academic Writing Service created to offer academic help to students from all parts of the world. We strive to be the best at what we do by combining convenient academic help with affordable pricing to allow all students to subscribe to our outstanding services.