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5. (6 points) A manager must decide which type of machine to buy. A or B. Machine costs are as follows: A $50,000 each; B

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5. (6 points) A manager must decide which type of machine to buy. A or B. Machine costs are as follows: A $50,000 each; B $90,000 each Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product Annual Demand 15,000 20,000 5,000 40DVD 6 3 Assume that only purchasing costs are being considered. Which machine would have the lowest total cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year. The machines differ in hourly operation costs. The A machines have an hourly operating cost of $15 each and B machines have an hourly operating cost of $40 each. Which alternative should be selected and hoy many machines to minimize total cost (for the first year) while satisfying the processing requirements, S. (6 points) A manager must decide which type of machine to buy. A or B. Machine costs are follows: A $50,000 each; B $90,000 each Issue Product forecast and processing times on the machines are as follows Processing Time per unit (minutes) Product 4 2 Annual Demand 15,000 20,000 5,000 400V 3 Assume that only purchasing costs are being considered. Which machine would have the lowest total cost and how many of that machine would be need? Machines operate 8 hours a day 250 days per year. The machines differ in hourly operation costs. The A machines have an hourly operating cost of $15 each and B machines have an hourly operating cost of $40 each. Which alternative should be selected and how many machines to minimize total cost (for the first year) while satisfying the processing requirements

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