A manager must decide which type of equipment to buy, Type A or Type B. Type A equipment costs $15,000 each, and Type B costs $11,000 each. The equipment can be operated 8 hours a day, 250 days a year.

Either machine can be used to perform two types of chemical analysis, C1 and C2. Annual service requirements and processing times are shown in the following table. Which type of equipment should be purchased, and how many of that type will be needed? The goal is to minimize total purchase cost.

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Analysis Type C1 C2 Annual Volume 1,200 900 PROCESSING TIME PER ANALYSIS (hr) A B 1 3 22 2