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 machines (DM). The cost data follow: General Purpose Equipment(GPE) Flexible Manufacturing System(FMS) Dedicated Machine(DM) 200.000 200,000 200,000 Annual Contracted units Annual fixed cost. $100,000 $200,000 $500,000 $15 $14 Per unit variable cost. $13 7.3 Using the data in Problem 7.1, determine the best pro-cess for each of the following volumes: (1) 75,000, (2) 275.000, and (3) 375,000