Texas State Bank was founded in 1869. It has had a record of slow, steady growth since its inception. Management has always kept the processing of information as current as technology allows. Leslie Oistins, manager of the Brazas branch, is upgrading the check-sorting equipment in her office. There are ten check-sorting machines in operation. Information on the number of checks sorted by machine during the past eight weeks is at the top of the following page.

The Brazas branch has increased its checking business significantly over the past two years. Oistins must decide whether to purchase additional check-sorting machines or attachments for the existing machines to increase productivity. Five weeks ago the Colonnade Company convinced her to experiment with one such attachment, and it was placed on Machine BD. Oistins is impressed with the attachment but has yet to decide between the two courses of action. Labor costs are not a factor in her decision.

Required
1. Compute the average weekly output of all machines except BD.
2. Compare the weekly output of Machine BD with the average weekly output of the nine machines without the attachment. Compute the weekly difference in the number of checks and the percentage change (difference divided by the average weekly output of the nine machines).
3. Manager Insight: Assume that Colonnade’s attachment costs about the same as a new check-sorting machine. Which alternative would you recommend that Oistins choose?
4. Manager Insight: Would you change your recommendation if two attachments could be purchased for the price of one check-sorting machine? Does this decision require more data?
5. Manager Insight: If three attachments could be purchased for the price of one check-sorting machine, what action would yourecommend?

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Week Machine One Two Three FoFiveSix Seven Eight 89,260 89,439 89,394 90,288 90,739 90,658 90,676 90,630 91,420 91,237 91,602 91,969 91,950 92,502 92,446 92,816 94,830 95,020 94,972 95,922 96,40 96,315 96,334 96,286 91,970 91,786 92,153 92,522 92,503 93,058 93,002 93,375 87,270 87,445 87,401 88,275 88,716 88,636 88,654 88,610 92,450 92,265 92,634 93,005 92,986 93,544 93,488 93,862 91,910 92,094 92,048 92,968 93,433 93,349 93,368 93,321 90,040 89,860 90,219 90,580 90,562 91,105 91,051 91,415 87,110 87,190 87,210 130,815 132,320 133,560 134,290 135,770 94,330 94,519 94,471 95,416 95,893 95,807 95,826 95,778 2 AB AC AD BA 1 ВС BD BE