20 Jan Texas State Bank was founded in 1869. It has had a
Texas State Bank was founded in 1869. It has had a record of slow, steady growth since its inception. Management has always kept the processing of information as current as technology allows. Leslie Oistins, manager of the Brazas branch, is upgrading the check-sorting equipment in her office. There are ten check-sorting machines in operation. Information on the number of checks sorted by machine during the past eight weeks is at the top of the following page.The Brazas branch has increased its checking business significantly over the past two years. Oistins must decide whether to purchase additional check-sorting machines or attachments for the existing machines to increase productivity. Five weeks ago the Colonnade Company convinced her to experiment with one such attachment, and it was placed on Machine BD. Oistins is impressed with the attachment but has yet toMachineOneTwoThreeFourFiveSixSevenEightAA89,26089,43989,39490,28890,73990,65890,67690,630AB91,42091,23791,60291,96991,95092,50292,44692,816AC94,83095,02094,97295,92296,40196,31596,33496,286AD91,97091,78692,15392,52292,50393,05893,00293,375AE87,27087,44587,40188,27588,71688,63688,65488,610BA92,45092,26592,63493,00592,98693,54493,48893,862BB91,91092,09492,04892,96893,43393,34993,36893,321BC90,04089,86090,21990,58090,56291,10591,05191,415BD87,11087,19087,210130,815132,320133,560134,290135,770BE94,33094,51994,47195,41695,89395,80795,82695,778Decide between the two courses of action. Labor costs are not a factor in her decision.Required1. Compute the average weekly output of all machines except BD.2. Compare the weekly output of Machine BD with the average weekly output of the nine machines without the attachment. Compute the weekly difference in the number of checks and the percentage change (difference divided by the average weekly output of the nine machines).3. Manager Insight: Assume that Colonnade’s attachment costs about the same as a new check-sorting machine. Which alternative would you recommend that Oistins choose?4. Manager Insight: Would you change your recommendation if two attachments could be purchased for the price of one check-sorting machine?Does this decision require more data?5. Manager Insight: If three attachments could be purchased for the price of one check-sorting machine, what action would you recommend?
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