A manager must decide between these three alternatives in buying a new machine Machine A B...

 

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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 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

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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 the full answer