Jay Manufacturing, Inc., began oper

Jay Manufacturing, Inc., began operation five years ago producing probos, a new medival instrument it hoped to sell to doctors and hospitals. the demnd for probos for exceeded initial expectations, and the company was unable to produce enough probos to meet demand. the company was manufacturing this product using self-constructed equipment at the start of operations. to meet demand, it need more efficient equipment. the company decided to design and self-construct this new, more eficient equipment. A section of the plant was devoted to development of new equipment and a special staff was hired. within six months, a machine was developed at a cost of 170000 that successfully increased production and reduced labor costs substantially. sparked by the success of this new machine, the company built three more machines of same type at a cost of 80000 each.