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 the

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 wil 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 Flexible Manufacturing Dedicated Equipment (GPE) System (FMS) Machine (DM) Annual contracted units 225,000 225,000 225.000 Annual foxed cost $125,000 $200 000 $480.000 Per unit variable cost $16.00 $14.00 $13.00 The option GPE is best when the contracted volume is below units conter your response as a whole number)

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