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

Borges Machine Shop, Inc., has a 1-year contract for the production of 225,000 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).
 Borges Machine Shop, Inc., has a 1-year contract for the production

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