Business, 12.03.2021 14:50 jasminer257

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost
A $80,000
B $70,000
C $40,000

Product forecasts and processing times on the machines are as follows:

PROCCESSING TIME PER UNIT (minutes)
Product Annual Demand A B C
1 24,000 1 4 6
2 8,000 1 3 5
3 30,000 6 4 3
4 18,000 6 5 1

Required:
a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year.
b. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.)

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A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machin...

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