Borges Machine$$ Shop, Inc., has a$1-$year contract for the production of $250$ comma $000$ gear housings for a new$$ 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:

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Tim$$ Urban owner$/$ manager of$$ Urban's Motor Court in Key$$ West, is considering outsourcing the daily room cleanup for his motel to$$ Duffy's Maid Service. Tim rents an average of $50$ rooms for each of $365$ nights$(365\backslash$times $50$ equals the total rooms rented for the$$ year$).$ Tim's cost to clean a room is $ $12\mathrm{.}50.$ The$$ Duffy's Maid Service quote is $ $18\mathrm{.}00$ per room plus a fixed cost of $ $24$ comma $000$ for sundry items such as uniforms with the$$ motel's name.$$ Tim's annual fixed cost for$$ space, equipment, and supplies is $ $60$ comma $000.$