Chapter 5 question: 1. A manager must decide which type of machine to buy, A, B, or C Machine costs are as follows: Machine Cost A B $50,000 $40,000 $90,000 c Product forecasts and processing times on the machines are as follows: PROCESSING TIME PER UNIT (minutes) Annual Product Demand B. C 1 3 4 2 3 2 4 4 18.000 14,000 8,000 32,000 3 5 4 6 2 4 2 1 a. Assume that only purchasing costs are being considered. Which machine would have the lowest total cost, and how many of that machine would be needed? Machines operate 10 hours a day. 250 days a year. b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $10 each, B machines have an hourly operating cost of 511 each, and C machines have an hourly operating cost of $12 each. Page 218Which alternative would be selected, and how many machines, in order to minimize total cost while satisfying capacity processing requirements