Why are the engineers required to consider strictly all  major cost elements while selecting the equipment?

Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run time this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 7,500 minutes 12,500 minutes 2-a. Utilization loss in units 2-b. Efficiency loss in units 2-c. Quality loss in units 6.30 units per minute 7 units per minute Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 37,800 units 47,250 units

Q1