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 $$100,000$ $$200,000$ $$500,000$

Per unit variable cost $ $15\mathrm{.}00$ $ $14\mathrm{.}00$ $ $13\mathrm{.}00$

Which process is best for this contract?

Group of answer choices

The crossover points need to be decided.

The cost of all of them is the same.

The total cost of the dedicated machine is the cheapest.

The total cost of the flexible manufacturing system is the cheapest.

The total cost of the general purpose equipment is the cheapest.