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

Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 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:
If the contract for the second and third years is pending, for demand below 50,000 units, option
is the best alternative for Luis.
For demand above 325,000 units, option
is the best alternative for Luis.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:
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 numbers).
The option DM is best when the contracted volume is over units (enter your response as a whole number).
 Borges Machine Shop, Inc., has a 1-year contract for the production

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