Medical Testing Labs, Inc., provides routine testing services for blood banks in the Los Angeles area. Tests are supervised by skilled technicians using equipment produced by two leading competitors in the medical equipment industry. Records for the current year show an average of 27 tests per hour being performed on the Testlogic‑1 and 48 tests per hour on a new machine, the Accutest‑3. The Testlogic‑1 is leased for $18,000 per month, and the Accutest‑3 is leased at $32,000 per month. On average, each machine is operated 25 eight-hour days per month.

A. Describe the logic of the rule used to determine an optimal mix of input usage.

B. Does Medical Testing Lab usage reflect an optimal mix of testing equipment?

C. Describe the logic of the rule used to determine an optimal level of input usage.

D. If tests are conducted at a price of $6 each while labor and all other costs are fixed, should the company lease more machines?