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ABC Corp. is considering two options for drum handling at their facility: manual handling

ABC Corp. is considering two options for drum handling at their facility: manual handling using a hand truck, or using a forklift attachment that will carry two drums at a time. Thirty drums arrive on a truck each day. They are removed from the truck and taken to a staging area about one-hundred feet from the loading dock (waiting until needed in production). The production line uses the thirty drums per day at three production stations, each approximately 200 feet from the staging area. The hand truck costs $400. The forklift attachment costs $8000. A fully-loaded manual laborer operating the hand truck costs $12/hour. A forklift operator costs $22/hour (including the cost of operating the forklift).

Determine the number of drums per day that would require each of the device options (hand truck, forklift) to purchase a second device?

Dec 02 2019 View more View Less

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