Assume Clearly Canadian has discovered a problem involving the mix of flavor to the seltzer water that costs the company $3,000 in waste and $2,500 in lost business per period. There are two alternative solutions. The first is to lease a new mix regulator at a cost of $4,000 per period. The new regulator would save Clearly Canadian $2,000 in waste and $2,000 in lost business. The second alternative is to hire an additional employee to manually monitor the existing regulator at a cost of $2,500 per period. This would save Clearly Canadian $1,500 in waste and $800 in lost business per period.
Which alternative should Clearly Canadian choose?