Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 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: Annual contracted units Annual fixed cost Per unit variable cost General-Purpose Equipment (GPE) The option GPE is best when the contracted volume is below Flexible Manufacturing System (FMS) Dedicated Machine (DM) 200,000 $150,000 $16.00 units (enter your response as a whole number). 200,000 $250,000 $14.00 200,000 $525,000 $13.00

Borges Machine Shop, Inc, has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the yolume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), foxible 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)