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:

General$-$Purpose Equipment $($GPE$)$

Flexible

Manufacturing System

$($FMS$)$

Dedicated Machine

$($DM$)$

Annual contracted

units

$200,000200,000200,000$

Annual fixed cost $$140,000$ $$200,000$ $$400,000$

Per unit variable cost $ $16\mathrm{.}00$ $ $15\mathrm{.}00$ $ $13\mathrm{.}00$

Which of the above providers is best for this $1-$year contract?