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 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:

General-Purpose Equipment (GPE) Flexible Manufacturing System (FMS) Dedicated Machine (DM) Annual contracted units 225,000 225,000 225,000 Annual fixed cost $125,000 $200,000 $500,000 Per unit variable cost $16.00 $14.00 $13.00

The option GPE is best when the contracted volume is below

37,50037,500 units (enter your response as a whole number).

Part 3 The option FMS is best when the contracted volume is between

enter your response here and

enter your response here units (enter your responses as whole numbers).