Question: A manager must decide between these three alternatives in buying a new machine Machine A B C The firm produces for product. Product forecasts

A manager must decide between these three alternatives in buying a new

A manager must decide between these three alternatives in buying a new machine Machine A B C The firm produces for product. Product forecasts and processing times on the machine are as follows PROCESSING TIME PER UNIT MINUTES Product 1 2 3 4 REQUIRED:- Annual demand 16,000 12,000 6,000 30,000 Cost in Kshs 4,000,000 3,000,000 8,000,000 A 3 4 5 2 B 4 4 6 2 C NO 2 3 4 41 1 Which machine would have the lowest total cost and how many of that machines would be needed? The machine operates 10 hours a day and 250 days a year. Assume all machines have a variable cost of Sh 400/hr

Step by Step Solution

★★★★★

3.51 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To determine which machine would have the lowest total cost and how many of that machine would be needed we need to calculate the total cost for each ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

In 1990 about 50% of Americans considered the low quality of education as a serious problem for the country. What is the chance that sample proportion will reflect the proportion of the total...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

. A vertical pole that is 2 meters tall casts a shadow that is 1.5 meters long. Nearby, at the same time, another vertical pole casts a shadow that is 6.5 meters long. How tall is this pole? a. Make...

A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine Cost A .........$ 40,000 B .........$ 30,000 C .........$ 80,000 Product forecasts and processing...

Create by Requirements of a Dialogue : 1. Parties at both ends have been clearly identified. 2. All parties in dialogue must be able to participate. 3. All parties in dialogue must want to...

A manager must decide which type of machine to buy. A, B, or C. Machine costs are Product forecasts and processing times on the machines are as follows: a. Assume that oaly purchasing costs are being...

Excel Data File Machine Cost A $80,000 B $70,000 C $40,000 Processing Times (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 A manager must...

5 A manager must decide which type of machine to buy or C Machine costs for individual machine) are as follows: 36 po 10.000 Product forecasts and processing times on the machines are as follows...

Assigned Article: Sensation-Seeking, Risk-Taking, and Reckless Behavior by J.J. Haugaard Answer the following questions: Give a description of either a risk-taking behavior you engaged in as an...

Please see attached Document and give answers for all. Thanks Qz 9 Firm A uses straight-line depreciation. Firm B uses MACRS depreciation. Both firms bought $75,000 worth of equipment last year that...

10. A company must decide which type of machine to buy, and how many units of that type, given the following information: Type Cost 1 $10,000 14,000 2 Product demand and processing times for the...

Cruise ships of the Royal Viking line report that 80% of their rooms are occupied during September. For a cruise ship having 800 rooms, what is the probability that 665 or more are occupied in...

n 13 For the circuit shown in the figure, the Mesh Equation for loop 2 is: ed 32 out of ww ww ww question 32 iz 2V 6V 4 V 42 ww 12 5 V Select one: O a. 51, 91, + 314 = 6 O b. 51, 91, + 31, = 12 O...

Determine lim x 2 x 2 + 2 x - 8 x 2 - 4

12. 2 sine sin20 2 sin 0 + sin 20 tan 2 %3D

Sim 1 10. Prove that 2 == V2 + V3. V2 -1 V3 +1 4,3

= tan 'a. log (x + y)+b tan), prove a'u, o'u ax Oy %3D

12. Explain the three criteria for drawing causal conclusions from research data. Based on these criteria, to what extent is it correct to draw causal conclu- sions from surveys, experiments,...

The stockholders? equity section of Haley Corporation at December 31 is as follow. Instruction From a review of the stockholders' equity section, as chief accountant, write a memo to the president of...

Suppose f: [-1,0] R and g: [0,1] R are continuous and f(0)=8(0). Defineh: [-1,1] R by h(x) := f(x) if x 0 and h(x) :=8(x) if x > O. Show that h is continuous.

A shop specializes in heat-treating gears. At 8 a.m., when the shop opened today, five orders were waiting to be processed. Assume that only one unit at a time can be heat-treated. a. If the earliest...

Why is operations management important to any organization?

Tip Top Markets is a regional chain of supermarkets. On July 28, Karen Martin, manager of one of the stores, was disturbed by the large number of recent complaints from customers at her store,...

Why are people in the UK so inert to the onslaught of promotional marketing messages? (In 1999 more than

Consider the advent of artificial agents (intelligent search engines loaded with consumer preference data) in online shopping. What are the implications for the management of marketing communications?

What are the advantages and disadvantages for consumers/buyers and providers, respectively, of the proliferation of media options?