Question: 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

Borges Machine Shop, Inc., has a 1-year contract
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 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 (OM) The cost data follow Annual contracted units Annual fbxed cost Per unit variable cost General Purpose Equipment (GPE) 225.000 $100.000 $1800 Flexible Manufacturing System (FMS) 225.000 $225,000 $14.00 Dedicated Machine (DM) 225.000 $500.000 $13.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number)

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