Factory Equipment Dilemma

Simple arithmetic calculation is required to solve this. If the upfront cost be $x_n$ and cost per chair be $y_n$ for the $n$ th tier machinery, the cheapest machinery would be the $n$ th machinery for which the value of $x_n+(20000\times y_n)$ is the lowest.

I don't think that I need to show the full calculation as all of you can calculate the value of $x_n+(20000\times y_n)$ for the $n$ th tier machinery from the values given in the problem. On calculating, we get--

For $n=1$ , the cost is $\$760000$ , for $n=2$ , the cost is $\$800000$ and for $n=3$ , the cost is $\$780000$ . So, we get the cheapest value for $n=1$ . Thus, Tier 1 machinery is the cheapest .

Tier 1: $200,000 upfront + $560,000 total (28 $\times$ 20,000) = 760,000
Tier 2: $360,000 upfront + $440,000 total (22 $\times$ 20,000) = 800,000
Tier 3: $500,000 upfront + $280,000 total (14 $\times$ 20,000) = 780,000

Tier 1 machinery is cheapest.

just a simple solution let A become your machinery 1 so the upfront cost be X and per chair is Y so Ax+(Ay x 20000) Machinery 2 represents B so Bx+(By x 20000) and machinery 3 is Cx+(Cy x 20000)

therefore An=$760000 Bn= $800000 Cn= $780000 meaning the cheapest machinery is machinery 1 which has a cost of $760000

Coût de la machine 1 : 200 000 $ + (28 $ x 20 000 chaises) 560 000 $ = 760 000 $ Coût de la machine 2 : 360 000 $ + (22 $ x 20 000 chaises) 440 000 $ = 800 000 $ Coût de la machine 3 : 500 000 $ + (14 $ x 20 000 chaises) 280 000 $ = 780 000 $

La solution la plus économique est la machine n° 1.

Tier 1 is the cheapest :) though on the long run Tier 3 is the best choice because when you increase the number of produced chairs it gets more cheaper then, that is why the problem states only 20,000 chairs because it is at the break point where tier 3 surpasses all other choices

you just had to calculate the cost of the upfront + cost of making 20000 chairs And the cheapest one will be tier 1

First know the cost for 20,000 chairs

if bye first machinery total amount total cost for chairs=20000 28=560000 total amount = chairs cost for built + machinery cost = 560000+200000=760000 if bye second machinery total amount total cost for chairs=20000 22=440000 total amount = chairs cost for built + machinery cost =440000+360000=800000 if bye second machinery total amount total cost for chairs=20000*14=280000 total amount = chairs cost for built + machinery cost =280000+500000=780000

so answer is first machinary

teir #1 First = 200.000+(28 20000) = 760.000 Second = 360.000 + (22 20000) = 800.000 Third = 500.000 + (14*20000) = 780.000 that's teir one the cheapest

tier 1 is the cheapest

Tier 1 is the cheapest

200 000 + ( 28 * 20 000 ) = 760 000

360 000 + ( 22 * 20 000 ) = 800 000

500 000 + ( 14 * 20 000 ) = 780 000

Tier 1 = 200000 + 28 x 20000 = 760000 Tier 2 = 360000 + 22 x 20000 = 800000 Tier 3 = 500000 + 14 x 20000 = 780000

The best price is the Tier 1.

tier 1 costs 28 per chair, its upfront cost is 200000 so we have to make 20000 chairs so (28X20000+200000)=760000 tier 2 costs 22 per chair, its upfront cost is 360000 so we have to make 20000 chairs so (22X20000+360000)=800000 tier 3 costs 14 per chair, its upfront cost is 500000 so we have to make 20000 chairs so (14X20000+500000)=780000 so tier 1 is the cheapest

Tier 1 is the answer

Tier one is the cheapest. 1

tier 1 is cheapest

Tire 1 as the upfront cost + Manufacturing cost is lowest.

Tier 1, will be the less total cost as 28 x 20000 + 200,000 = 760,000 .

just multiply the cost per chair to total no of chairs required and then and it to machine cost. then find the least value

for tier 1 machine total cost =28 20000$+200000=760000$. for tier 2 machine total cost =22 20000$+360000=800000$. for tier3 machine total cost =14*20000+500000=780000$. so in cost tier1<tier2<tier3 so answer is tier1.

I just divided all machinery cost to 20,000 and add the cost per chair and choose the cheapest cost per chair

Tier 1 = (200,000/20,000)+28 = 38

Tire 2 = (360,000/20,000)+22 = 40

Tier 3 = (500,000/20,000)+14 = 39

So TIER 1

machinery 1 is cheapest

For machinery 1 the cost is $200,000 + (20000 * 28) = $7,60,000

For machinery 2 the cost is $360,000 + (20000 * 22) = $8,00,000

For machinery 3 the cost is $500,000 + (20000 * 20) = $7,60,000

So the machinery 1 is the cheapest

200000+28 20000=760000 360000+22 20000=800000 500000+14*20000=780000

Tier 1 is the cheapest

Tier 1: $200,000 upfront + $560,000 total (28 20,000) = 760,000 Tier 2: $360,000 upfront + $440,000 total (22 20,000) = 800,000 Tier 3: $500,000 upfront + $280,000 total (14 20,000) = 780,000

Good One

the total cost = upfront cost + cost per chair *20000 the tier 1 machinery has the lowest total cost, $760000 and hence octopus must go for it.

just remove the 10000s from upfront cost and no of chairs to simplify calculation.. Keep the number of chairs as 2.

Tier 1 = 20+28*2= 76 Tier 2 = 36 + 22 *2 = 80 Tier 3 = 50 + 14 *2 = 78

200,000+28 20,000=760,000 360,000+22 20,000=800,000 500,000+14*20,000=780,000

Tier 1 is the cheapest since:

Tier 1: $200,000 upfront + $560,000 total (28 * 20,000) = 760,000 Tier 2: $360,000 upfront + $440,000 total (22 * 20,000) = 800,000 Tier 3: $500,000 upfront + $280,000 total (14 * 20,000) = 780,000

tier 1 machinery;upfront cost of $200,000 and costs 28$ per chair = $200028 tier 2 machinery;upfront cost of $200,000 and costs 28$ per chair = $360022 tier 3 machinery;upfront cost of $500,000 and costs 14$ per chair = $500014

my answer is tier 1 machienery

Tier 1: $200,000 upfront + $560,000 total (28 20,000) = 760,000 Tier 2: $360,000 upfront + $440,000 total (22 20,000) = 800,000 Tier 3: $500,000 upfront + $280,000 total (14 20,000) = 780,000

1st =200000+28 20000=400056. 2nd=360000+22 20000=720044. 3rd=500000+14*20000=100002. cheapest is 1st tier machinery .

For tier 1: $200,000 + $560,000 total (28 * 20,000) = 760,000 For tier 2: $360,000 + $440,000 total (22 * 20,000) = 800,000 for tier 3: $500,000 + $280,000 total (14 * 20,000) = 780,000

So we can say that tier 1 machinery is cheapest.