Question: Question 1 (5 points) Gemstone Quarry is trying to decide whether to invest in a new material handling system. The current system (which is old

Question 1 (5 points) Gemstone Quarry is trying to decide whether to invest in a new material handling system. The current system (which is old and completely paid for) has an annual maintenance cost of $10,000 and costs approximately $25 to transport each load of material. The two new systems that are being considered vary both in sophistication and cost. System 1 has a fixed cost of $40,000 and a cost per load estimated at $10. System 2 has a fixed cost of $100,000 but a per-load cost of $5. Gemstone should select system 1 when demand is greater than 12,000 units True False

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