the operation of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Each completed part can be sold at Php 7 per part. Operation 1 produces 2,000 parts per hour. After each hour, the tooling must be adjusted by the machine operator. The adjustment takes 20 minutes. The machine operator for Operation 1 is paid Php350 per hour. Operation 2 produces 1,300 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. The adjustment takes 30 minutes. The machine operator for Operation 2 is paid Php 192.5 per hour. Assume an 8-hour work day. Further assume all parts
For the operation of part R-193, two operations are being considered. The capital investment associated with each operation is identical. Each completed part can be sold at Php 7 per part. Operation 1 produces 2,000 parts per hour. After each hour, the tooling must be adjusted by the machine operator. The adjustment takes 20 minutes. The machine operator for Operation 1 is paid Php350 per hour. Operation 2 produces 1,300 parts per hour, but the tooling needs to be adjusted by the operator only once every two hours. The adjustment takes 30 minutes. The machine operator for Operation 2 is paid Php 192.5 per hour. Assume an 8-hour work day. Further assume all parts produced can be sold. Should operation 1 or Operation 2 be recommended?
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