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: If the contract for the second and third years is pending, for demand below $37,500$ units, option is the best altemative for Luis.If the contract for the second and third years is pending, for demand below $37,500$ units, option is the best allernative for Luis. For dernand above $325,000$ units, option is the best alternative for Luis.data follow: If the contract for the second and third yes is the best alternative for Luis. For demand above $325,000$ units, option is the best altemative for Luis.