Question
XYZ Company produces widgets. They have budgeted for 5,000 widgets to be sold, and have two machine options available,. Machine one requires human supervision and
XYZ Company produces widgets. They have budgeted for 5,000 widgets to be sold, and have two machine options available,. Machine one requires human supervision and makes 1,000 widgets per hour, while machine two runs by itself, but only makes 200 widgets per hour. Which machine should XYZ use?
A)We should use machine two because even though it is slower, it does not require labor.
B)We dont have enough information to determine which machine to use. Cost drivers may include waste, repairs, utility usage or several other cost drivers.
c)We should use machine one because it produces more widgets per hour.
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