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A manufacturing firm has received a contract to assemble 2500 units of test equipment in the...

A manufacturing firm has received a contract to assemble 2500 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $35 per hour each, can individually assemble the test equipment in 2.6 hours per unit. Alternatively, teams of four less skilled workers (at $18 per hour each) can assemble a unit in 1.5 hours. Which approach is more economical?

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