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

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 officient, dedicated machine (DM). The cost data follow Annual contracted units Annual fixed cost Per unit variable cost General Purpose Equipment (GPE) 250.000 $125,000 $16.00 Flexible Manufacturing System (FMS) 250,000 $225,000 $14.50 Dedicated Machine (DM) 250 000 S500 000 $13.50 Based on the cost, the process that is best suited for the current contracted volume is

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!

Benzene, C 6 H 6 , belongs to the D 6h group. The reducible representation for the vibrational modes is a. How many vibrational modes does benzene have? b. How many of these modes are infrared active...

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...

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...

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, 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...

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...

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 200,000 gear housings for a new off-road vehicle. Owner Luis Borge the contract will be extended and the volume increased next...

The company signed a $1,800,000 contract to build an environmentally friendly access trail to Timpanogas Caves. The project was expected to take approximately three years. The following information...

The following data were collected during a study of consumer buying patterns: Observation 1 2 3 5 67 X 16 23 45 31 52 50 28 74 83 86 82 99 95 84 Observation 8 9 10 11 12 13 X 15 18 y 79 74 13. 67 23...

A shareholder voting agreement Multiple Choice is essentially a voting trust created in compliance with a corporation statute. is limited in duration to 1 0 years, but may be extended for another 1 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...