Question: Borges Machine Shop, Inc., has a 1 - year contract for the production of 2 0 0 , 0 0 0 gear housings for a
Borges Machine Shop, Inc., has a year contract for the production of gear housings for a new offroad 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 generalpurpose equipment GPE flexible manufacturing
system FMS and expensive, but efficient, dedicated machine DM The cost data follow:
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
The option DM is best when the contracted volume is over units enter your response as a whole number
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