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 $ and a variable cost of $ per metal panel. Process requires a fixed cost of $ and a variable cost of $ per metal panel. Process is more automated than Process
Predicted demand for the next year is What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $ 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.
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