Shaq Corporation has discovered a problem involving welding its bicycle frames that costs the company

$3,000 in waste and $1,500 in lost business per period. There are two alternative solutions. The first is to lease a new automated welder at a cost of $3,500 per period, which would save $1,500 in waste and $1,000 in lost business. The second alternative is to hire an additional employee to manually weld the frames at a cost of $3,000 per period, which would save $2,500 in waste and $1,000 in lost business per period.

Required Form small groups and prepare an analysis of the two alternatives. Which alternative should Shaq choose?