please answer within 30 minutes. A manager must decide which type of machine to buy, A, B, or C. Machinecosts (per individual machine) are as follows:Machine CostA$70,000B$60,000C$50,000Product forecasts and processing times on the machines are as follows:PROCCESSINGTIME PERUNIT (minutes)Product AnnualABCDemand111,00051 224,00056 2326,00024 5422,00016 3Click here for the Excel Data Filea. Assume that only purchasing costs are being considered. Compute the totalprocessing time required for each machine type to meet demand, how many ofeach machine type would be needed, and the resulting total purchasing costfor each machine type. The machines will operate 8 hours a day, 240 days ayear. (Enter total processing times as whole numbers. Round up machinequantities to the next higher whole number. Compute total purchasing costsusing these rounded machine quantities. Enter the resulting total purchasingcost as a whole number.)b. Consider this additional information: The machines differ in terms of hourlyoperating costs: The A machines have an hourly operating cost of $13 each, Bmachines have an hourly operating cost of $11 each, and C machines have anhourly operating cost of $10 each. What would be the total cost associated witheach machine option, including both the initial purchasing cost and the annualoperating cost incurred to satisfy demand?(Use rounded machine quantitiesfrom Part a. Do not round any other intermediate calculations. Round yourfinal answers to the nearest whole number.)

Processing time is the total time taken by machinery in converting the raw material into finished…

Answered: A manager must decide which type of…

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 70,000 B $ 60,000 C $ 50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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