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A company needs to produce widgets. Two machines are able to make the widgets. Machine A costs $20 to set up to begin production. Machine B cost $50 to set up. Machine A can make widgets at a cost of $2 each; Machine B can make widgets at a cost of $1.50 each. Machine A is stopped every time it has made 15 widgets for maintenance. This costs $5. (200 POINTS)

a. Prepare a table or chart in Microsoft Word to compare costs.

b. Using the table or chart and Microsoft Excel, and identify the break-even point.

c. Determine the least costly method and the cost to produce 40 widgets.

d. Determine the least costly method and the cost to produce 10 widgets.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92520428

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