Question: Borges Machine Shop, Inc., has a 1-year contract for the production of 225.000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the

Borges Machine Shop, Inc., has a 1-year contract for the production of 225.000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended a developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). TI Annual contracted units Annual foced cost Per unit variable cost General Purpose Equipment (GPE) 225.000 $100,000 $15.00 Flexible Manufacturing System (FMS) 225.000 $225,000 $14.00 Dedicated Machine (DM) 225,000 $480,000 $1300 The option GPE is best when the contracted volume is below 125,000 units (enter your response as a whole number) The option FMS is best when the contracted volume is between N and units (enter your responses as whole numbers)

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