question archive A firm is engaged in entering data using web-based software

A firm is engaged in entering data using web-based software

Subject:Operations ManagementPrice: Bought3

A firm is engaged in entering data using web-based software. The job is to enter data from a type of form. The firm gets taka 21.00 for each of the entered forms' data. There are 10 working hours in a day and 25 working days in a month. The firm can enter 16800 forms' data each day by using some part-time workers. Wage is taka 3.60 per entered forms' data. The monthly depreciation cost of the entry system is taka 990 thousand. Currently, the overhead expense is taka 25.2 million per year. The firm is considering purchasing some data scanner machine. It is expected that the firm can enter 30% more forms' data each day with the scanner machine. Only 30 full-time workers are needed this time. The monthly average salary of the worker is taka 36,000 per worker. With the scanner machine, the yearly depreciation cost of the entry system will be taka 30 million with an overhead expense of taka 3.3 million per month. Will the firm go for purchasing the scanner machine? Why?

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