Baby Doll Shop manufactures wooden parts for dollhouses. The worker is paid $8.10 an hour and, using
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Baby Doll Shop manufactures wooden parts for dollhouses. The worker is paid $8.10 an hour and, using a handsaw, can produce a years required production (1600 parts) in just eight 40-hour weeks. That is, the worker averages five parts per hour when working by hand. The shop is considering purchasing a power band saw with associated fixtures, to improve the productivity of this operation. Three models of power saw could be purchased: Model A (the economy version), model B (the high-powered version) and model C (the deluxe high-end version). The major operation difference between these models is their speed of operation. The investment costs, including the required fixtures and other operating characteristics, are summarized as follows.
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