Assume that only purchasing costs are being considered. compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. the machines will operate 8 hours a day, 200 days a year.

The question is incomplete.

Explanation:

The question is incomplete, please refer below the complete question.

A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows:

MachineCost

A$40,000

B$30,000

C$80,000

Product forecasts and processing times on the machines are as follows:

Product         Annual DemandProcessing time per unit (minutes)

                                                                           A    B     C

1                 16,000                                      3    4      2

2                 12,000                                      4     4      3

3                 6,000                                     5      6      4

4                 30,000                                      2     2      1

Assume that only the purchasing cost is being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 8 hours a day, 200 days a year.

Total Processing Time in Minutes per Machine  

Number of each machine needed and total purchasing cost

Total Processing Time in Minutes per Machine

Total time = Total demand for each product * Processing time

Machine A:

(16 , 000  ∗  3 ) +  (12 , 000  ∗  4)  +  (6 , 000  ∗  5)  + ( 30 , 000  ∗  2)  =  $ 186 , 000

Machine B:

(16 , 000  ∗  4)  +  (12 , 000  ∗  4)  +  (6 , 000  ∗  6)  +  (30 , 000  ∗  2)  =  $ 208 , 000

Machine C:

(16 , 000  ∗  2)  +  (12 , 000  ∗  3)  +  (6 , 000  ∗  4)  +  (30 , 000  ∗  1)  =  $ 122 , 000

Number of machines needed and total purchasing cost

Number of machine  =  Total processing time  / Time available

Time available = Number of days * Hours per day * 60

Machine A:

Number of machine  =  186 , 000 /  (200 ∗  8  ∗  60)

Number of machine  =  2  (Round off)

Machine B:

Number of machine  =  208 , 000 /  (200  ∗  8  ∗  60)

Number of machine  =  2  (Round off)

Machine C:

Number of machine  =   122 , 000 /  (200  ∗  8 ∗  60)

Number of machine  =  1  (Round off)

Machine cost:

Machine cost = Cost per machine * Number of machines  

Machine A:

2  ∗  $ 40 , 000  =  $ 80 , 000  

Machine B:  

2  ∗  $ 30 , 000  =  $ 60 , 000

Machine C:  

1  ∗  $ 80 , 000  =  $ 80 , 000

answer; rapid growth in buyer demand and high buyer switching cost;