QUESTION 1 & TASK: Four currently owned machines are being considered for the production of a part. The capital investment associated with the machines is about the same and can be ignored for purposes of this situation. The important differences among the machines are their production capacities and reject rates. Consider the following Table 1. Table 1 Production rate Machine A Machine B Machine C Machine D 200 170 parts/hour parts/hour parts/hour parts/hour 7 hours/day 8 hours/day 9 hours/day 6 hours/day 260 210 Hours available for production Percent parts rejected 11% 4% 7% 10% The material cost is RM 7.00 per part, and all defect-free parts produced can be sold for RM 13 each. (Rejected parts have negligible scrap value.) For each machine, the total operator cost is RM 30.00 per hour and the variable overhead rate for traceable costs is RM 6.00 per hour. i) Assume that daily demand for this part is large enough that all defect-free parts can be sold. Evaluate which machine should be selected. ii) Estimate the percent of parts rejected of the other three machines that were not selected to be as profitable as the selected machine