Question: A supervisor needs to produce widgets. Two machines are able to make the widgets. Machines A takes 2 hours to set up and can then

  1. A supervisor needs to produce widgets. Two machines are able to make the widgets. Machines A takes 2 hours to set up and can then make widgets at a rate of $80per hour. The machine does not have to be stopped once it is running. Machine B takes 30 minutes to set up and can then make widgets at the rate of 60 per hour, but every 2 hours the machine has to be stopped and lubricated. Lubrication takes 30 minutes. All costs are calculated at a rate of $40 per hour. Draw a chart to compare costs. Read from the chart:

  1. The least cost method to produce 150 widgets.

  2. The least cost method to produce 400 widgets.

  3. The earliest point at which the costs will be the same (in units).

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