Question: Question 81 is included for reference only. Please answer question 84 only. Thanks in advance! 81. A company needs to produce widgets. Two machines are

Question 81 is included for reference only. Please answer question 84 only. Thanks in advance!

81.A company needs to produce widgets. Two machines are able to make the widgets. Machine A costs $10.00 to set up to begin production. Machine B cost $50.00 to set up. Machine A can make widgets at a cost of $2.00 each; Machine B can make widgets at a cost of $1.50 each. Machine A is stopped every time it has made 15 widgets for maintenance. This costs $5.

  1. Prepare a table or chart in Microsoft Word to compare costs.
  2. Using the table or chart, identify the break-even point.
  3. Determine the least costly method and the cost to produce 40 widgets.
  4. Determine the least costly method and the cost to produce 10 widgets.

84. In Question 81, Machine A works flawlessly, almost never producing scrap (possibly because of regular maintenance). However, Machine B produces scrap regularly. The operation of Machine B projects that in a batch of between 40-60 widgets, there is a 30% change no widgets will be scrapped, a 50% change of producing one scrap part (therefore requiring one extra to be made), and a 20% chance of producing two scrap parts (requiring two extra to be made). The cost of a scrap widget, because of the accumulated time and material, is $14.00. What machine should the company use to produce 40, 50, and 60 widgets?

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