You are considering two competitors' machines to extrude plastic for computer monitorsone from Baxter and the other from Zonic. You will buy all machines from one of these suppliers. The demand for computer monitors is approximately 34,000 per year. There is a good chance that demand will increase by 5 percent over the next few years.

Data on the machines follow:

BaxterZonic

Processing time (minutes per unit)4036

Units per manufacturing batch500400

Setup time (minutes per batch)240660

Your operation runs 21 hours per day, 300 days per year. As you can see, Zonic has a shorter processing time. Your company has experience with Baxter. There is less of a comfort level with Zonic. However, given the reduced processing time, management feels it must be considered. However, if you go with Zonic, management has mandated that you maintain a 15 percent capacity cushion. Your capacity cushion for Baxter would need to be 5 percent. Both machines are similarly priced. How are the two machines different?

Make a recommendation as to which type of machine should be purchased. Be sure to consider today's demand and a scenario in which demand increases by 5 percent.