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:

	General-Purpose Equipment (GPE)	Flexible Manufacturing System (FMS)	Dedicated Machine (DM)
Annual contracted units	250,000	250,000	250,000
Annual fixed cost	$125,000	$250,000	$525,000
Per unit variable cost	$18.00	$14.00	$13.00

The option GPE is best when the contracted volume is below

31,25031,250

units (enter your response as a whole number).

The option FMS is best when the contracted volume is between

31,25031,250

and

275,000275,000

units (enter your responses as whole numbers).

The option DM is best when the contracted volume is over

nothing

units (enter your response as a whole number)