Carlson Inc., has discovered a problem involving the mix of limestone in its dry concrete mix that costs the company $5,000 in waste and $3,500 in lost business per period. There are two alternative solutions.

The first is to lease a new mix regulator at a cost of $3,500 per period, which would save $3,500 in waste and $2,000 in lost business. The second alternative is to hire an additional employee to manually monitor the existing regulator at a cost of $3,000 per period, saving $2,500 in waste and $2,000 in lost business per period.

Required Prepare a memo that evaluates the two alternatives. Which alternative should Carlson choose