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, 220 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.)
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, 220 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.)
Practical Management Science
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...
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please answer all parts of the question within 30 minutes with detailed explanation. Make sure the answers are in detailed manner for better understanding. Else i will give negative ratings.

Transcribed Image Text: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
с
$50,000
Product forecasts and processing times on the machines are as follows:
PROCCESSING TIME PER
UNIT (minutes)
Annual
Product Demand
C
1
5,000
2
13,000
23,000
8,000
4
6
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, 220 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.)
34
3
A2424
83315B
92375
1

Transcribed Image Text: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, 220 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.)
Total processing
time in minutes
per machine:
A
B
C
Number of each machine needed and
total purchasing cost
C
Buy
b. Consider this additional information: The machines differ in terms of
hourly operating costs: The A machines have an hourly operating cost of
$10 each, B machines have an hourly operating cost of $10 each, and C
machines have an hourly operating cost of $12 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 rounțied machine quantities from Part a. Do not round
any other intermediate calculations. Round your final answers to the
nearest whole number.)
Total cost for each machine
A
B
A
B
C
Buy
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