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A manufacturer has identified the options for producing a machined part:

1. Make the part on a standard lathe for $250 per unit.
2. Make the part on a numerically controlled lathe for $150 per unit.
3. Make the part on a machining center for $50 per unit.

Costs for acquiring equipment are as follows:

- A standard lathe costs $10,000.
- A numerically controlled lathe costs $24,000.
- A machining center costs $48,000.

Which statement is not correct?

Answer :

Final answer:

The statement that is not correct is that the manufacturer can acquire a machining center for $48,000.

Explanation:

The statement that is not correct is that the manufacturer can acquire a machining center for $48,000. In fact, the correct cost of acquiring a machining center is $24,000. The correct cost of acquiring a standard lathe is $10,000, and the correct cost of acquiring a numerically controlled lathe is $24,000.

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