Signal Mountain Fabrication Company has been growing faster than its owners ever dreamed. To support that growth, it has to decide whether to hire more people or to buy another robotic fabrication machine. Its 50 workers and 5 robotic fabrication machines currently produce 10,000 widgets per day. Two months ago it added 3 workers and production went up by 500 widgets for the month. Its most recent robotic machine purchase cause production to increase by 600 widgets per month. Signal Mountain currently pays its workers on average $48,000 per year and estimates that the machines costs on average $150,000 per year over its useful life (this cost includes the machine operator). What should the Signal Mountain owners do to increase production? Please solve with excel. Group of answer choices a. Support growth by improving quality b. Support growth by paying workers more c. Support growth by focusing on adding workers d. Support growth by focusing on adding machines
Signal Mountain Fabrication Company has been growing faster than its owners ever dreamed. To support that growth, it has to decide whether to hire more people or to buy another robotic fabrication machine. Its 50 workers and 5 robotic fabrication machines currently produce 10,000 widgets per day. Two months ago it added 3 workers and production went up by 500 widgets for the month. Its most recent robotic machine purchase cause production to increase by 600 widgets per month. Signal Mountain currently pays its workers on average $48,000 per year and estimates that the machines costs on average $150,000 per year over its useful life (this cost includes the machine operator). What should the Signal Mountain owners do to increase production? Please solve with excel. Group of answer choices a. Support growth by improving quality b. Support growth by paying workers more c. Support growth by focusing on adding workers d. Support growth by focusing on adding machines
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Signal Mountain Fabrication Company has been growing faster than its owners ever dreamed. To support that growth, it has to decide whether to hire more people or to buy another robotic fabrication machine. Its 50 workers and 5 robotic fabrication machines currently produce 10,000 widgets per day. Two months ago it added 3 workers and production went up by 500 widgets for the month. Its most recent robotic machine purchase cause production to increase by 600 widgets per month. Signal Mountain currently pays its workers on average $48,000 per year and estimates that the machines costs on average $150,000 per year over its useful life (this cost includes the machine operator). What should the Signal Mountain owners do to increase production? Please solve with excel.
Group of answer choices
a. Support growth by improving quality
b. Support growth by paying workers more
c. Support growth by focusing on adding workers
d. Support growth by focusing on adding machines
Expert Solution
Step 1
There is no mention of supporting growth in question. Hence, option a and b aree not correct answer.
Cmpare the cost of adding worker and machine to find the answer.
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