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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 five employees. Process A requires a fixed cost of $ and a variable cost of $ per metal panel. Process B requires a fixed cost of $ and a variable cost of $ per metal panel. Process A is more automated than Process B
What is the breakeven quantity between these two processes? Round your answer to the nearest whole number.
metal panels
If predicted demand for next year is panel folds, what process do you recommend? Round your answers to the nearest dollar.
Total cost of Process A: $
Total cost of Process B: $
So is recommended.
What is the cost savings? Round your answer to the nearest dollar.
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