Gce Model Questions Vol1 2021 Geography Question 46

A manufacturing firm currently produces 2,500 tonnes of product per year, employing 125 workers and operating 50 machines. Each machine can process 60 tonnes per year and requires one operator to run at full capacity. The average annual wage per worker is £12,000 and each machine depreciates £15,000 per year (cost spread over 10 years). The firm wishes to increase output by 30 % while keeping the total annual cost increase (labour + capital) to no more than 12 % of the present total cost. Each worker can work overtime, raising output by 5 tonnes per year at an extra cost of £2,000 per worker per year. Determine the optimal combination of additional overtime‑working workers (x) and new machines (y) that meets the output target at the minimum possible cost increase, and state the numbers of workers and machines to be added.