A plastic manufacturing company that makes four major products seeks to expand its operations in the coming year. At the beginning of the financial year, the company must decide on which of four new machines A, B, or C to purchase to be able to meet total annual demand. Each machine operates 14 hours a day, 360 days a year. Machine A costs GH43,000, machine B costs GH37,500 and machine C costs GH75,000. The following product forecasts and processing times have been projected:

	Demand, units/year	Processing times per Unit (Minutes)
Product		Machine A	Machine B	Machine C
Penholders	16,000	5	3	6
Bowls	14,000	4	3	5
Cups	6,000	6	5	7
Carrier Bags	24,000	3	2	3
Plastic Bottles	20,000	4	5	3

1. Calculate the pure load on each of the machines.
2. Which of the machines is a Capacity Constrained Resource?
3. How many of each machine would be needed to meet all of the years demand?
4. Assuming that only purchasing costs are being considered, which of the machines would have the lowest cost for the manufacturers total processing needs?
5. How much will the manager have to pay for the purchase of the machine in question (d) in order to be able to meet all of the demand for the year?