14.12

You are comparing replacement of the current lab, which has a cost function of C= 200,000 + 25 x Q, with an automated lab that has a cost function of C= 300,000 + 20 x Q. Doing so would reduce the error rate from 1.5 percent to 1 percent . Your volume is expected to be 18,000 tests per year. Should you choose the  automated lab? Briefly explain the logic.

Answer rating: 100% (QA)

Answer At Q 18000 Cost in current lab C 200000 25 x 18000 200000 ... View the full answer