A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers,

at $32 per hour each, can individually assemble the test equipment in2.7 hours per unit. Alternatively, teams of five less-skilled workers (at $22 per hour each) can assemble a unit in 0.8 hours. Which approach is more economical?

Fig: 1