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A tissue paper machine was recently constructed in Australia to produce 10 million boxes of tissue each year and it cost $120

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Cost of Machine to produce 10 million boxes of tissue is USD 120 million, which simply translate the cost of machine to produce 1 million tissue box to 12 USD million. Let me explain how:

If 10 million boxes of tissue is produced in usd 120 million than cost of 1 million box will be 120 divided by 10 which comes to USD 12 million.

a. Determine the capital cost of building a machine (in mild steel) producing 9 million boxes of tissue each year in Australia

By going to above logic, as cost of producing 1 million tissue box is 12 usd million than the cost of producing 9 million boxes will be usd 12 million multiplied by 9 tissues boxes which comes to USD 108 million, so the capital cost of building a machine in (mild steel) producing 9 million boxes in each year in Australia will be USD 108 million.

b. Please provide more information to answer question b

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