Question: 7A-2. Can someone show me how to do this problem? Will rate a thumb up for good response thanks so much (PLEASE CIRCLE OR HIGHLIGHT

7A-2. Can someone show me how to do this problem?

Will rate a thumb up for good response thanks so much (PLEASE CIRCLE OR HIGHLIGHT final answer thx)

7A-2. Can someone show me how to do this problem?

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: Annual contracted units Annual fixed cost Per unit variable cost 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 $525,000 $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)

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