Question 1. If JOBCO can increase the capacity of both machines, which machine should receive higher priority?
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Question 1. If JOBCO can increase the capacity of both machines, which machine should receive higher priority?
The dual prices for machines 1 and 2 are $14.00/hr and $2.00/hr. TIlis means that each additional hour of machine 1 will increase revenue by $14.00, as opposed to only $2.00 for machine 2.
Thus, priority should be given to machine 1.
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