Machine | Setup Costs | Variable Cost per Unit |
A | $8 | $0.24 |
B | $80 | $0.09 |
The manager wants to determine which machine to schedule to minimize total cost when an order requires milling.
Determine the total cost equation for each machine.
Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: A machine shop manager has two machines that can do the same milling operation…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Plot these two equations on one graph.
At what volume do machines A and B have the same total cost?
What decision rule should the manager use when determining which machine to use for a particular order requiring milling?
Expert Answer
Answer