A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows:
Machine Cost
A $ 45,083
B $ 29,210
C $ 87,737
Product forecasts and processing times on the machines are as follows:
PROCCESSING TIME PER UNIT (minutes)
Product Annual
Demand A B C
1 15,888 3 4 2
2 12,008 4 4 3
3 5,375 5 6 4
4 27,084 2 2 1
a. Assume that only purchasing costs are being considered. Which machine would have the lowest total cost, and how many of that machine would be needed? Machines operate 10 hours a day, 250 days a year. (Round up your answers to the next whole number.)