Question: Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing four employees to operate it or Process B with general
Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing four employees to operate it or Process B with general purpose folding equipment requiring six employees. Process A requires a fixed cost of $1,490,000 and a variable cost of $14.98 per metal panel. Process B requires a fixed cost of $870,000 and a variable cost of $21.25 per metal panel. Process A is more automated than Process B. Predicted demand for the next year is 110,000. What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $23.00 per panel? Round your answers to the nearest dollar. Total cost of Process A: $
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