Barbara's Baking Factory Is Considering Two Different Machines

question 25

Essay

Barbara's baking factory is considering two different machines. Machine A is highly automated with FC of $12,000 and VC of $.61/unit. Machine B is actually no machine but rather hand labor with FC of $17,000 and VC of $.43/unit. If demand for Barbara's baking factory is 12,000, which machine should she pick?

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Definitions:

Appreciative Inquiry

A change management approach that focuses on identifying what is working well, analyzing why it is working well, and then doing more of it.

Driving Forces

Key factors or influences that propel an entity towards its goals or a specific direction of change.

Restraining Forces

Elements that hinder or limit the progress towards change or a desired outcome.

Incongruent Organizational Systems

Systems within an organization that do not align or match with its goals, strategies, or structure, leading to inefficiencies or conflicts.