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Q4. Machine A and Machine B are being considered for production of a new product. The product can be sold for $55 per unit. The
Q4. Machine A and Machine B are being considered for production of a new product. The product can be sold for $55 per unit. The material cost is $35 and the labour cost is $15 per hour. The overhead is $10 per hour. Production Rate Hours for production Percent part rejected Machine A 350 parts/hour 9 hour/day 3% Machine B 250 parts/hour 7 hours/day 5% (a) Which machine will you buy? (b) Why you make such decision? (16%) (4%)
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