Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Records for the current year show that the monthly marginal product of Sunny Tune System (STS) is 800 tests per month and 1200 tests per month on the Car Care Tower System (CCT). The STS is leased for $8,000 per month (PSTS), and the CCT is leased at a rate of $12,000 per month (PCCT). Each routine diagnostic test is sold to customers for $15.

A. What is the MPSTS / PSTS (the MPSTS divided by the PSTS) Express as a decimal not as a fraction.

B. What is the MPCCT / PCCT (the MPCCT divided by the PCCT) Express as a decimal not as a fraction.

C. What is the MRTS between the CSS and the STS? Express as a decimal not as a fraction.

D. For the current monthly output are they using the least cost combination of the two machines?  yes or no.

E. What is the MRP of the STS? NO $ or decimal points in your  .

F. What is the MRP of the CCS? NO $ or decimal points in your  .

G. If Smokey wished to maximize profit is he using the optimal amount of STS or should he lease more or less of the STS.

Your  should be expressed as more, less or no change if he is currently using the optimal amount.

F. If Smokey wished to maximize profit is he using the optimal amount of STS or should he lease more or less of the STS.

Your  should be expressed as more, less or no change if he is currently using the optimal amount.