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8. CAT Co. makes a product using three machines - X, Y and Z. The per week capacity of each machine is 800, 600 and
8. CAT Co. makes a product using three machines - X, Y and Z. The per week capacity of each machine is 800, 600 and 500 units respectively. The demand for the product is 1,000 units per week. For every additional unit sold per week, profit increases by 50,000. CAT Co. is considering the following possible purchases (they are not mutually exclusive): Purchase 1: Replace machine X with a newer model. This will increase capacity to 1,100 units per week and costs 60 Lakhs. Purchase 2: Invest in a second machine Y, increasing capacity by 550 units per week. The cost of this machine would be 68 Lakhs. Purchase 3: Upgrade machine Z at a cost of 375 Lakhs, thereby increasing capacity to 1,050 units. Required: Which is CAT Co's best course of action under throughput accounting
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