Question: A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B $100,000 each Product forecast and processing

A manager must whether to buy machine A or B.
A manager must whether to buy machine A or B. Machine costs are as follows: A $52,000 each; B $100,000 each Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product Annual Demand P B 1 8,000 5 2 2 18,000 7 3 3 10,000 3 2 Assume that only purchasing costs are being considered, which machine would have the lowest purchase cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year, The machines differ in hourly operation costs. The A machines have an hourly operating cost of $12 each and B machines have an hourly operating cost of $30 each. What is the operating cost per year and which alternative should be selected to minimize total cost (for the first year) while satisfying the processing requirements

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