One of the necessary changes was to renovate and replace equipment. Partially based on making the right choice regarding process and capacity, their $7-$year loan was repaid in $3$ years.

Assume the following scenario: To increase capacity in their retail area by replacing equipment, two alternatives $($ A and $B)$ have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $$40,000$ for A and $$30,000$ for B; variable costs per cone would be $$1\mathrm{.}10$ for A and $$1\mathrm{.}60$ for $B$; and revenue per ice cream cone is $$3\mathrm{.}50.$

A new production line has three stations $-$ mixing the base ingredients followed by freezing followed by packaging. The first station $($mixing the base ingredients$)$ can process a batch in $11$ minutes. The second station $($freezing$)$ has two identical machines, each of which can process a batch in $13$ minutes. The third station $($packaging$)$ can process a batch in $9$ minutes.