Question

You are trying to figure out the most cost effective way to paint scooters that you make. You can lease an automated

machine for $2,600 per month that will paint 4,000 scooters per month. You can also hire six painters at $23 per hour who can also paint
4,000 scooters per month if they work 160 hours per month. Which is more cost effective?
a) The painters
b) The machine
c) Can't tell

Answer 1

b) The machine

Step-by-step explanation:

The most cost-effective option will be the less expensive option.

The cost of the machine is $2,600

The cost of the painters will

The cost per hour for six painters is $23

The cost for 160 hours will be

=$23 x 160

=$3,680

The machine is more cost-efficient