7.1 Borges Machine Shop, Inc., has a 1-year contract  for the production of 200,000 gear housings for a new off-road  vehicle. Owner Luis Borges hopes the contract will be extended  and the volume increased next year. Borges has developed costs  for three alternatives. They are general-purpose equipment  (GPE), flexible manufacturing system (FMS), and expensive, but  efficient, dedicated machine (DM). The cost data follow:  GENERALPURPOSE  EQUIPMENT  (GPE) FLEXIBLE  MANUFACTURING  SYSTEM (FMS) DEDICATED  MACHINE  (DM) Annual contracted  units 200,000 200,000 200,000 Annual fi xed cost $100,000 $200,000 $500,000 Per unit variable cost $ 15.00 $ 14.00 $ 13.00 Which process is best for this contract? PX • 7.2 Using the data in Problem 7.1, determine the most  economical volume for each process. PX • 7.3 Using the data in Problem 7.1, determine the best process for each of the following volumes: (1) 75,000, (2) 275,000,  and (3) 375,000.