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:

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

The option FMS is best when the contracted volume is between _______ and _________ units (enter your responses as whole numbers).

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

Annual contracted units Annual fixed cost Per unit variable cost General Purpose Equipment (GPE) 200,000 $125,000 $18.00 Flexible Manufacturing System (FMS) 200,000 $250,000 $14.00 Dedicated Machine (DM) 200,000 $500,000 $13.00