A manager must decide which type of machine to buy, A, B, or C. Machine costs are а. Machine Cost $40,000 $30,000 $80,000 A B Product forecast and processing times on the machines are as follows: Product Annual Demand Processing Time per unit (Hour) А В C 1 16,000 3 4 2 2 12,000 4 3 3 6,000 30,000 6. 4 4 1 Assume that only purchasing costs are being considered. Which machine would have the lowest total cost, and how many of that machine would be needed? Machine operates 10 hours a day, 250 days a year.
A manager must decide which type of machine to buy, A, B, or C. Machine costs are а. Machine Cost $40,000 $30,000 $80,000 A B Product forecast and processing times on the machines are as follows: Product Annual Demand Processing Time per unit (Hour) А В C 1 16,000 3 4 2 2 12,000 4 3 3 6,000 30,000 6. 4 4 1 Assume that only purchasing costs are being considered. Which machine would have the lowest total cost, and how many of that machine would be needed? Machine operates 10 hours a day, 250 days a year.
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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