Question: 0 Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes

0 Borges Machine Shop, Inc., has a 1-year

0 Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 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 alteratives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) 250,000 $125,000 $16.00 Flexible Manufacturing System (FMS) 250,000 $200,000 $14.00 Dedicated Machine (DM) 250.000 $500,000 $13.00 Based on the cost, the process that best suited for the current contracted volume is FMS DM GPE Click to select your answer(s)

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