Borges Machine shop inc has a 1 year contract for the production of 200,000 gear housings for a new off road vehicle. Owners Luis Borges hope the contract will be extended and the volume increased next year.Borges has developed cost for three alternative. They are general purpose equipment GPE flexible manufacturing system (FMS) and expensive but efficient, dedicated machine (DM).The cost data follow.

Annual contracted units 200,000 (General purpose equipment (GPE) 200,000 ( Flexible MANUFACTURING system (FMS) 200,000 (dedicated machine (DM)

Annual fixed cost $125,000 (General purpose equipment (GPE) 225,000 ( Flexible MANUFACTURING system (FMS) $500,000 (dedicated machine (DM)

Per unit variable cost $15.00 (General purpose equipment (GPE) $14.00 ( Flexible MANUFACTURING system (FMS) $13.50

(dedicated machine (DM)

The option GPE is best when the contracted volume is below.....units (enter your response as a whole number)

The option CMS is best when the contracted volume is between.........and .......units Enter your response as whole numbers)

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