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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 $ and a variable cost of $ per metal panel. Process requires a fixed cost of $ and a variable cost of $ per metal panel. Process A is more automated than Process B Predicted demand for the next year is What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $ 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 $ and a variable cost of $ per metal panel. Process requires a fixed cost of $ and a variable cost of $ per metal panel. Process A is more automated than Process B Predicted demand for the next year is What do you recommend if Worthington Machining can buy folded metal panels of identical size at a price of $ 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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