Question: 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

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: Based on the cost, the process that is best suited for the current contracted volume is hopes the contract will be extended and the volume increased next or au, Uuu gear nousings tor a new or-road venicie. UWner Luis borges general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensit or three alternatives. They are data follow: fedicated machine (DM). The cost Based on the cost, the process that is best suited for the current contracted volume is

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