A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: MachineCostA$60,000B$50,000C$60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes)ProductAnnualDemand ABC116,000 344210,000 651315,000 136417,000 534 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.) The image outlines a problem focused on calculating total processing times and costs associated with different machine types. The task involves determining the total processing time for each machine type, the number of machines required, and the total purchasing cost.### Instructions:- Compute the total processing time required for each machine type to meet demand.- Determine how many of each machine type would be needed.- Calculate the total purchasing cost for each machine type.### Specifications:- Machines operate 10 hours a day, 240 days a year.- Total processing times should be entered as whole numbers.- Round up machine quantities to the next higher whole number.- Compute total purchasing costs using rounded quantities and ensure the total cost is a whole number.### Tables:1. **Total processing time in minutes per machine:** | | | |---|---| | A | | | B | | | C | |2. **Number of each machine needed and total purchasing cost:** | | | |---|---| | A | | | B | | | C | | | Buy | |This structured approach ensures clear calculation steps for educational purposes, emphasizing rounding rules and whole numbers. The text on the image reads:"b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand? (Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.)"There is a table below with the following structure:| Total cost for each machine ||-----------------------------|| A || B || C || Buy |The table is currently empty, likely intended for calculations or data entry regarding the total cost associated with each machine option.

In- order to calculate the Total processing time per machine = Sum of (Annual demand * Unit…

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 $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product Annual Demand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 Click here for the Excel Data File a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number.) b. Consider this additional information: The machines differ in terms of hourly operating costs: The A machines have an hourly operating cost of $13 each, B machines have an hourly operating cost of $15 each, and C machines have an hourly operating cost of $10 each. What would be the total cost associated with each machine option, including both the initial purchasing cost and the annual operating cost incurred to satisfy demand?(Use rounded machine quantities from Part a. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.)

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

		PROCCESSING TIME PER UNIT (minutes)
Product	Annual Demand	A	B	C
1	16,000	3	4	4
2	10,000	6	5	1
3	15,000	1	3	6
4	17,000	5	3	4