Answer:
1) The marginal (added) benefits of the proposed new robotics.
560,000 - 400,000 = 160,000
2) The marginal (added) cost of the proposed new robotics.
220,000 - 70,000 = 150,000
3) The net benefit of the proposed new robotics.
160,000 - 150,000 = 10,000
4) What should Ken recommend that the company do? Why?
Replace the existing robotics because the net profit is positive
5) What factors besides the costs and benefits should be considered before the final decision is made?
A. Whether there will be additional training necessary with the new robotics.
B. Whether even better robotics may be available in a short while.
C. What will be the energy consumption of the new robotics.
