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6. (5 points) Jane Persico, facility engineer at the El Paso plant of Computer Products Corporation (CPC), is studying a process selection decision at the
6. (5 points) Jane Persico, facility engineer at the El Paso plant of Computer Products Corporation (CPC), is studying a process selection decision at the plant. A new printer is to be manufactured and she must decide whether the printer will be auto-assembled or manually assembled. The decision is complicated by the fact that annual production volume is expected to increase by almost 50% over three years. Jane has developed these estimates for two alternatives for the printer assembly process: Assembly Process Automatic Manual Annual Fixed Cost $690000 $269000 Variable Cost Per Unit $29.56 $31.69 Year 1 $152000 $152000 Estimated Annual Production oduction (Number of Units) Year 2 $190000 $190000 Year 3 $225000 $225000 Which production process would be the least-cost alternative in Years 1, 2, and 3? (a) For year 1, automatic process is least cost alternative. For year 2, manual process is least cost alternative. For year 3, manual process is least cost alternative. (b) For year 1, manual process is least cost alternative. For year 2, manual process is least cost alternative. For year 3, automatic process is least cost alternative. (c) For year 1, manual process is least cost alternative. For year 2, automatic process is least cost alternative. For year 3, manual process is least cost alternative. (d) For year 1, manual process is least cost alternative. For year 2 automatic process is least cost alternative
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