Question: Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 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 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract wil be extended and the volume increased noxt year Borges has developed costs for three altornatives . They aro goneral purpose oquipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM) Tho cost data follow Annual contracted units Annual fixed cost Per unit variable cost General Purpose Equipment (GPE) 200,000 $100,000 $15 00 Flexible Manufacturing System (FMS) 200,000 $200,000 $14,00 Dedicated Machine (DM) 200 000 $480,000 $13.00 The option GPE is best when the contracted volume is below units (oriter your response as a whole number)

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