The following process is used to assemble bicycles. The process is fully automated, and the capacity rate of each machine is given in the parentheses: Currently there is one machine at each station. You are considering about purchasing additional machines to expand the process capacity. Suppose you have a budget of $5,000, and the cost of the four machines is given as follows: M1 M2 M3 М4 Cost ($) 1,500 2,500 1,200 800 Assume that, for all four machines, the additional one has the same capacity as the current one. Please come up with a plan, specifying how you are going to spend the $5,000 budget and what is the maximum increase in process capacity that you can achieve

The following process is used to assemble bicycles. The process is fully automated, and the capacity rate of each machine is given in the parentheses: Currently there is one machine at each station. You are considering about purchasing additional machines to expand the process capacity. Suppose you have a budget of $5,000, and the cost of the four machines is given as follows: M1 M2 M3 М4 Cost ($) 1,500 2,500 1,200 800 Assume that, for all four machines, the additional one has the same capacity as the current one. Please come up with a plan, specifying how you are going to spend the $5,000 budget and what is the maximum increase in process capacity that you can achieve

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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