Question: 12:06 est: Chapter 7- MyLab OM Assignment Submit his Question: 1 pt 6 of 15 This Test: 15 pts pos Borges Machine Shop, Inc., has

12:06 est: Chapter 7- MyLab OM Assignment Submit
12:06 est: Chapter 7- MyLab OM Assignment Submit his Question: 1 pt 6 of 15 This Test: 15 pts pos 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 extended and the volume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturin system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow General Purpose Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 200,000 200,000 200,000 Annual fixed cost $100,000 $200,000 $480,000 Per unit variable cost $15.00 $14.00 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). The option FMS is best when the contracted volume is between and units (enter your responses as whole numbers). The option DM is best when the contracted volume is over units (enter your response as a whole number). Enter your answer in each of the answer boxes Save for Later

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!