14 Dec Susan Scott has discovered a problem involving the
Susan Scott has discovered a problem involving the mix of lye to the dry concrete mix that costs the company $20,000 in waste and $14,000 in lost business per period. There are two alternative solutions. The first is to lease a new mix regulator at a cost of $14,000 per period. The new regulator would save Susan $14,000 in waste and $8,000 in lost business. The second alternative is to hire an additional employee to manually monitor the existing regulator at a cost of $12,000 per period. This would save Susan $10,000 in waste and $8,000 in lost business per period.Which alternative should Susan choose?
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