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One machine has to be purchased to produce a certain product. Two options are available. Machine A, which is capable to produce 50 units per
One machine has to be purchased to produce a certain product. Two options are available. Machine A, which is capable to produce 50 units per hour, can be purchased for $900,000. On the other hand, Machine B, which is capable to produce 55 units per hour, can be purchased for $1,000,000. The variable costs per hour on machines A and B are $40 and $45, respectively. The available working hours per year are 2000 and each unit produced is sold for $50. What is the profit that can be achieved in the first year of production? Assume that all units produced are sold and only one machine is used
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