Question: Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the

Borges Machine Shop, Inc., has a 1-year contract

Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 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: D Dedicated Machine (DM) General-Purpose Flexible Manufacturing Equipment (GPE) System (FMS) 250,000 $125,000 $18.00 250,000 Annual contracted units Annual fixed cost Per unit variable cost 250,000 $200,000 $525,000 $14.50 $13.00 Based on the cost, the process that is best suited for the current contracted volume is FMS GPE DM

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Borges Machine? Shop, Inc., has a? 1-year contract for the production of gear housings for a new? off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased

Borges Machine Shop, Inc has a 1-year contract for the production of 75 000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased...

Dedicated 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...

Borges Machine Shop, Inc., has a 1 - year contract for the production of 7 5 , 0 0 0 gear housings for a new off - road vehicle. Owner Luis Borges hopes the contract will be extended and the volume...

5 of 8 Borges Machine Shop, Inc. has a 1-year contract for the production of 250 000 gear housings for a new off-road vehicle. Oaner Luis Borges hopes the contract will be entended and the volume...

Borges Machine? Shop, Inc., has a? 1-year contract for the production of gear housings for a new? off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased

please answer all parts Si Borges Machine Shop, Inc. has a 1-year contract for the production of 250 000 gear housing for a new afroad vehide Owner Luis Borges hopes the contract will be extended and...

Malle Machine Shop, Inc, has a 1-year contract for the production of 250 000 gear housings for a new off-road vehicle Owner Larry Mello hopes the contrad will be extended and the volume increased...

Borges Machine Shop, Inc., has a 1-year contract for the production of gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next...

Borges Machine Shop, lnc, has a I-year contract for the production of 250 000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased...

A filter in the form of a series L-R-C circuit is designed to operate at a resonant frequency of 20 kHz. Included within the filter is a 20mH inductance and 8 2 resistance. Determine the bandwidth of...

1. An arithmetic logic unit (ALU) is the center of a central processing unit (CPU). It performers a set of arithmetic and logical micro operations on two input buses at every rising edge of CLK input...

A bond with a coupon rate of 6 percent that pays interest semianninally and is priced of par will have a market price of and interest payments in the amount of each Select one: a . $ 1 , 0 6 0 ;$ 6 0...

Read the articles on journaling and review the template provided. Identify what approach, to journaling, in the articles you found useful and why. Post to the discussion forum that you have reviewed...