It will be affected relative to the cost difference between the machine and labor . If the cost of the machine is more than labour in the short term it will be higher if not then lower . You should be able to calculate a realistic break even point for when the machine is paid off , obviously you need to take into account running costs and maintenance and whether or not they will exceed your existing labour costs . Cheers
Fixed costs (depreciation of machinery) increase, Variable costs (wages) decrease ...
