Question: 25,000 is incorrect for the first one Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new

25,000 is incorrect for the first one

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 General Purpose Equipment (GPE) 200.000 $100,000 $15.00 Flexible Manufacturing System (FMS) 200,000 $200.000 $14.00 Dedicated Machine (DM) 200.000 5500,000 $13.00 Annual contracted units Annual fixed cost Por unit variable cost The option GPE is best when the contracted volume is below 25000 units (enter your response as a whole number) The option GPE is best when the contracted volume is below The option FMS is best when the contracted volume is between The option DM is best when the contracted volume is over units (enter your response as a whole number) and units (enter your responses as whole numbers). units (enter your response as a whole number). a

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