A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand?

An existing machine in a factory has an annual maintenance cost of P40,000. A new and more efficient machine will require an investment of P90,000 and is estimated to have salvage value of P30,000 at the end of 8 years. Its annual expenses for maintenance and upkeep, etc. Total P 22,000. If the company expects to earn 12% on its investment, will it be feasible to purchase the new machine using the present worth method

Max production time per unit= ( per day demand/ operation time per day)
= ( 7/7)= 1 hr per unit

🍥Per day demand of generators= ( weekly demand)/ ( working days per week)
=( 35/5) = 7 generators per day.