Question: Borges Machine Shop, Inc., has a 1 - year contract for the production of 2 5 0 comma 0 0 0 2 5 0 ,

Borges Machine Shop, Inc., has a 1-year contract for the production of 250 comma 000250,000 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)Flexible Manufacturing System (FMS)Dedicated Machine (DM)Annual contracted units250 comma 000250,000250 comma 000250,000250 comma 000250,000Annual fixed cost$ 150 comma 000$150,000$ 250 comma 000$250,000$ 500 comma 000$500,000Per unit variable cost$ 18.00$18.00$ 14.00$14.00$ 13.00$13.00 Part 2The option GPE is best when the contracted volume is below enter your response here units (enter your response as a whole number).Part 3The option FMS is best when the contracted volume is between enter your response here and enter your response here units (enter your responses as whole numbers).Part 4The option DM is best when the contracted volume is over enter your response here units (enter your response as a whole number).

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