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:
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 325,000 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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