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 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
The option DM is best when the contracted volume is over
units enter your response as a whole number
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