Machine Type Purchase Cost Operating Cost

$1$ $$15,000$ $$8$ per hour

$2$ $$12,000$ $$7$ per hour

Product Demand and Processing Times for each type of machine are:

Annual Processing Time Per Unit

Product Demand Machine Type $1$ Machine Type $2$

A $12,0005$ mins $6$ mins

B $10,0005$ mins $8$ mins

C $18,0007$ mins $5$ mins

If the machines operate $8$ hours per day, $250$ days per year, which machine choice should be made if the manager wants to minimize total costs?

Group of answer choices

Machine $1$ because the total costs are only $$50,867$

Machine $2$ because the total costs are only $$61467$

Machine $2$ because the total costs are only $$64233$

Machine $2$ because the total costs are only $$64233$

Machine $1$ because the total costs are only $$61467$