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) 200,000 $150,000 $15.00 Flexible Manufacturing System (FMS) 200,000 $225,000 $14.00 Dedicated Machine (DM) 200,000 $525,000 $13.50 Based on the cost, the process that is best suited for the current contracted volume is DM GPE FMS