Question: Borges Machine Shop, Inc., has a 1-year contract for the production 200,000 gear housings for a new off-road vehicle. Owner Luis Borge the contract will

Borges Machine Shop, Inc., has a 1-year contract
Borges Machine Shop, Inc., has a 1-year contract for the production 200,000 gear housings for a new off-road vehicle. Owner Luis Borge the contract will be extended and the volume increased next year. B has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensis efficient, dedicated machine (DM). The cost data follow: GENERAL FLEXIBLE PURPOSE MANUFACTUREDICATED EQUIPMENT SYSTEM MACHINE (GPE) (FMS) KDM) Annual contracted units 200,000 200,000 200,000 Annual fixed cost $100,000 $200,000 $500,000 Per unit variable cost $ 15.00 $ 14.00 $ 13.00 Which process is best for this contract? The total cost of the general purpose equipment is the cheapest. The total cost of the flexible manufacturing system is the cheapest. The total cost of the dedicated machine is the cheapest. The cost of all of them is the same. The crossover points need to be decided

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