Question: Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general

Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing two employees to operate it or Process B with general purpose folding equipment requiring four employees.
Process A requires a fixed cost of $1,500,000 and a variable cost of $14.33 per metal panel. Process B requires a fixed cost of $870,000 and a variable cost of $20.25 per metal panel. Process A is more automated than Process B.
Predicted demand for the next year is 200,000. What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $24.75 per panel? Round your answers to the nearest dollar.
Total cost of Process A: $
Total cost of Process B: $
Total cost of purchase: $
So,
is recommended.
 Worthington Machining must decide whether to purchase Process A with specialized

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