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 year contract for the production of gear housings for a new offroad 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 generalpurpose 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
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