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Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing three employees to operate it or Process B with general

Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing three employees to operate it or Process B with general purpose folding equipment requiring four employees. Process A requires a fixed cost of $1,410,000 and a variable cost of $14.93 per metal panel. Process B requires a fixed cost of $870,000 and a variable cost of $21.45 per metal panel. Process A is more automated than Process B. Predicted demand for the next year is 130,000. What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $26.75 per panel? Round your answers to the nearest dollar.
Total cost of Process A: $
Total cost of Process B: $
Total cost of purchase: $
So, is recommended.
Worthington Machining must decide whether to purchase Process A with specialized metal folding equipment needing three employees to operate it or Process B with general purpose folding equipment requiring four employees. Process A requires a fixed cost of $1,410,000 and a variable cost of $14.93 per metal panel. Process B requires a fixed cost of $870,000 and a variable cost of $21.45 per metal panel. Process A is more automated than Process B. Predicted demand for the next year is 130,000. What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $26.75 per panel? Round your answers to the nearest dollar.
Total cost of Process A: $
Total cost of Process B: $
Total cost of purchase: $
So, is recommended.
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