Borges Machine Shop, Inc., has a 1 -year contract for the production of 200,000 gear housings for a new olfread vehicle. Owner Luis Borpes hopes the contract will be extonded and the volume increased next year. Borges has doveloped costs for three allematives. They are general-purpose equipment (GPE), fexble manulacturing system (FMS), and expenoive, but eificent dediealed machine (DM). The cost data follow: If the contract for the second and third yeare is pending, for demand beiow 37,500 units, option the the best atsernsive for tuis. For demand above 200.000 unis, option is the best alternative for tus