Optimal Input Level

question 49

Essay

Optimal Input Level. Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta, Georgia, metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Records for the current year show an average of 4 tests per hour performed on the Sunny Tune System (STS), and 6 tests per hour on a new machine, the Car Care Tower (CCT). The STS is leased for $8,000 per month, and the CCT is leased at a rate of $12,000 per month. On average, each machine is operated 25 eight-hour days per month. Labor and all other costs are fixed.
A. Does company usage reflect an optimal mix of testing equipment?
B. At a price of $15 per test should the company lease more machines?

---

Definitions:

Transgender

Referring to individuals whose gender identity or expression differs from the sex they were assigned at birth.

Distress

Extreme anxiety, sorrow, or pain.

Transgender

A phrase defining an individual whose gender identity does not align with the sex designated to them at birth.

Sex-Reassignment Surgery

Surgical procedures that change one's bodily appearance and function to better reflect a person’s identified gender.