medium$-$sized manufacturer of tiller equipment, had sales of $$24\mathrm{.}5$ million

and pretax profits of $$3\mathrm{.}3$ million last year, as shown in Table $1.$ The company manufactures two types of

tillers: a mini tiller and a medium$-$sized front$-$line tiller. These variants are produced on a single assembly

line that undergoes changeovers to meet changing demand. Changeover costs vary according to the type of

tiller and the planned production model. Transitioning from the mid$-$sized front$-$line tiller to the mini$-$tiller

is simple because the tiller frame remains consistent. The estimated changeover cost is $$1500.$

HORIZONTECH Company manufactures spare parts and components in$-$house in its machine shop while

also sourcing components directly from suppliers. An estimated $$11$ million was invested in various parts

and supplies last year, including engines, bolts, paint, wheels, and sheet steel. The company maintains a

$$1\mathrm{.}7$ million inventory of purchased parts to support both the machine shop and the assembly line. Due to

the constant supply influx, the plant typically keeps only a few days' worth of parts on hand when specific

tillers are assembled.