Remember $$ Do Not format your answers $....$ No $ signs or commas

A manager must decide which type of machine to buy, either A$,$ B or C$.$ Machine costs are as follows:

Machine

A $$40000$

B $$60000$

C $$50000$

Each machine will be used to produce $4$ different Products. The forecasted demand and processing times on the machines are as follows:

Processing Time Per Unit $($Minutes$)$

Product

Annual Demand

Using Machine A

Using Machine B

Using Machine C

$1$

$24000$

$3$

$3$

$3$

$2$

$16000$

$6$

$3$

$6$

$3$

$6000$

$3$

$4$

$3$

$4$

$3000$

$2$

$4$

$2$

Machines operate $10$ hours per day, $250$ days per year.

Compute the yearly processing time $($in minutes$)$ required for each of the different machines.

Machine A Processing Time $=192000$

Machine B Processing Time $=\_\_\_150000\_\_\_$Incorrect Response$(156000)$

Machine C Processing Time $=\_\_\_192000\_\_\_(10\%)$

Assume that only purchasing costs are being considered.

The machine with the lowest total cost $=\_\_\_$B$\_\_\_$Incorrect Response$($A$,$ a$)($either A$,$ B$,$ or C$)$

How many of that machine would be needed? $\_\_\_1\_\_\_$Incorrect Response$(2)$

The machines differ in terms of hourly operating costs. Machine A$,$ B$,$ and C have hourly operating costs of $$12,$ $$12,$ and $$17$ respectively.

Annual Operating Cost for Machine A $=\_\_\_38400\_\_\_(10\%)$

Annual Operating Cost for Machine B $=\_\_\_30000\_\_\_$Incorrect Response$(31200)$

Annual Operating Cost for Machine C $=\_\_\_54336\_\_\_$Incorrect Response$(54400)$

Assume that each of the machines has a useful life of $4$ years and the annual demand will remain at the same level for each of the $4$ years. Total Cost would be the initial cost of the machine$($s$)$ plus $4$ years of operating costs.

Total Cost for Machine A $=233600$

Total Cost for Machine B $=\_\_\_180000\_\_\_$Incorrect Response$(244800)$

Total Cost for Machine C $=\_\_\_317344\_\_\_$Incorrect Response$(317600)$

The machine Alternative with the lowest total cost $($initial cost plus $4$ years of operating costs$)=\_\_\_$B$\_\_\_$Incorrect Response$($A$,$ a$)($either A$,$ B$,$ or C$)$