$7\mathrm{.}5$ 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:

$\backslash$table$[[,\backslash$table$[[$GENERAL$-],[$PURPOSE$],[$EQUIPMENT$],[($GPE$)]],\backslash$table$[[$FLEXIBLE$],[$MANUFACTURING$],[$SYSTEM $($FMS$)]],\backslash$table$[[$DEDICATED$],[$MACHINE$],[($DM$)]]],[\backslash$table$[[$Annual contracted$],[$units$]],200,000,200,000,200,000],[$Annual fixed cost,$$100,000,$$$200,000,$$$500,000$